Small employers have more time to apply for paycheck protection program repayable loans now that Congress has extended the deadline to the end of March.
President Biden signed the PPP Extension Act of 2021 on Tuesday. The law gives small businesses two additional months to apply for federal loans that can be canceled – converted into a grant – if borrowers meet program requirements.
The new application deadline is May 31, and the US Small Business Administration, which manages the program, has an additional 30 days to process pending applications.
Paycheck Protection Program loans have helped many small U.S. businesses pay their employees and cover essential costs during pandemic-related shutdowns and a sharp economic downturn last year. Congress replenished funding for the program with an additional $ 284.5 billion in December and allowed more businesses to apply for first and second round loans.
To date, Maine employers have received nearly 43,000 loans worth over $ 3 billion from the program.
Senator Susan Collins, R-Maine, helped draft the original loan program created last March and she introduced the extension law that was enacted on Tuesday.
Businesses that employ up to 500 people and have not applied for the program can receive a loan of up to $ 10 million, most of which must be spent on payroll.
Establishments with 300 employees or less that experienced a loss of income of 25% or more last year can apply for a second forgivable loan.
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