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House & Senate passes PPP extension, allowing loan applications through May

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The PPP Extension Act of 2021 has passed in the House and in the Senate and is now on its way to the President’s desk for his signature. This will extend the deadline for PPP applications for another two months to May 31, 2021, and then provide an additional 30-day period for the Small Business Administration to process applications that are still pending.

The bill was co-introduced in the Senate by Maine’s own Senator Susan Collins.  “The PPP has been an enormous success, sustaining millions of small businesses and tens of millions of jobs,” said Senator Collins.  “Since last spring when we created the PPP, Members of Congress on both sides of the aisle have repeatedly taken action to increase funding and flexibility for the program.  I am pleased that Congress came together once again today to help more small businesses to access this lifeline by extending the deadline to apply for these forgivable loans.”

Small businesses that employ 300 or fewer people and that experienced a 25 percent or greater gross revenue loss between comparable periods in 2019 and 2020 due to COVID-19 are eligible to apply for a second forgivable PPP loan.  In addition, forgivable overhead expenses are expanded to include supplier costs and investments in facility modifications and personal protective equipment needed to operate safely.  In recognition of the severe impact that COVID-19 mitigation measures have had on the hospitality sector, in particular, the formula used to calculate the maximum forgivable loan amounts for second draw loans is enhanced for restaurants and hotels to equal 3.5x average monthly payroll.  Further, small business owners that did not receive a PPP loan in the first round are also eligible to apply.

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