Those needing PPP loans round two will not include Maine businesses, unfortunate. Many companies have been struck by the lockdowns that these loans are vital for these businesses to keep afloat.
Businesses in Portland, Maine, like other states in the country, should be able to apply for another road of
federal Paycheck Protection Program loans.
In 2020, Maine's commercial establishments got more than$2.2 billion in federal funds received last year. The COVID-19 pandemic has affected Maine and other places in the US. Worrying business owners how to stay in operation reported News Center, Maine.
One feature the distribution of Paycheck Protection Program loans that will be different compared to the last distribution of such loans. A tighter criterion is implemented to make sure smaller businesses can avail of them. The previous rollout of such loans was criticized severely because most large corporations benefited more.
One Portland business owner, Damian Sansonetti, remarked that the loans helped a lot.
According to Sansonetti and his wife, their restaurant Chaval was a recipient of federal assistance last year. It kept them going and hoping that such a loan be given to the small business owner in succeeding months.
Paycheck Protection Program loans' last disbursal was not subject to control and regulation; smaller establish got less. This time small businesses will be given more priority in the next set of paycheck loans.
When applying, these rules should be noted for business owners availing of the Paycheck Protection Program loans. These will be strictly applied.
a) All businesses will have a limit of $ 2 million when availed.
b) Applicant for PPP Loans Round Two, Maine Businesses should have less than 300 people employed in the establishment.
Also read: Mortgage and Your Home: How to Pay During the Pandemic
c) Proof should be submitted by the applicant that a 25% drop in sales or services from the same period in 2019.
d) Most of the applicants should not be publicly traded companies. Smaller businesses like mom and pops in local communities are preferred.
e) The federal government has a total fund of $12 billion to support a business of minorities.
Maine Small Business Development Centers, state director Mark Delisle mentioned these changes in the second round of loans are gear for mostly Maine-based establishments. Some of these businesses are struggling hospitality and restaurant industry.
Delisle added that some sectors were struck hard by the pandemic; these establishments have the option of applying (x3.5) of their payroll. This a contrast to x2.5 of the monthly payroll, according to News Center Maine.
These loans will only be availed via small community lenders or Community Development Financial Institutions (CDFI) initially. Confirmation is not known when other financial institutions are ready for rollout.
According to Maine Community Bank CEO Jeanne Hulit, the paperwork is getting processed for dozens of customers, ready to avail of the business loans.
She used to be the acting administrator of the Small Business Administration in the Obama administration during 2013. She enables establishments in Maine to get $75 million federal loans in 2020.
Adding that it took two weeks to get the emergency funds to their customers. Hoping it can be done again in 2019 for the second round of loans.
These second road PPP loans for first-time applicants (Maine Businesses) can get it from a community lender starting Jan. 11. Those on their second will be on Jan. 13.
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