PPP: How is Maine Faring?

June 24, 2020 Alerts and Newsletters

Originally enacted on March 27, the Paycheck Protection Program (PPP) offers loan support and (potentially) loan forgiveness to qualifying small businesses – generally defined as those with not more than 500 employees. According to the U.S. Census Bureau, just under half of all working Americans are employed by businesses of that size.

Protection and maintenance of headcount and wage rates are the key objectives of the PPP program. By offering payroll-based loans that carry the opportunity for forgiveness, the program seeks to encourage small business owners to hang onto employees despite a palm-sweating array of challenges and uncertainties that virtually all companies face due to COVID-19 and related restrictions on business activity and daily life.

Are you wondering how many local Maine businesses have been able to receive funding under the Paycheck Protection Program? Based on recent data from the Small Business Administration, here are some PPP statistics for each of the New England states:

PPP Loans to New England States - approved through 6/20/20

# Loans

Total $$ Loans

Avg $$/Loan

Population

#/10,000

# vs NE Avg

$$/10,000

$ vs NE Avg

ME

26,400

$2,228,185,817

$84,401

1,345,790

1.961673

120%

$165,567

86%

NH

23,011

$2,523,897,886

$109,682

1,371,246

1.678109

102%

$184,059

96%

VT

11,473

$1,176,053,186

$102,506

628,061

1.826733

112%

$187,251

98%

MA

108,925

$14,199,057,483

$130,356

6,976,597

1.561291

95%

$203,524

106%

RI

16,620

$1,865,533,955

$112,246

1,056,161

1.573624

96%

$176,633

92%

CT

58,257

$6,628,795,320

$113,785

3,563,077

1.635019

100%

$186,041

97%

NE Total

244,686

$28,621,523,647

$116,972

14,940,932

NE Average

1.637689

$191,565

Two things leap out from the New England statistics: Maine received considerably more loans per 10,000 residents, but in significantly smaller amounts per borrower. This suggests that Maine small businesses have taken good advantage of the program but also that Maine, on average, has smaller payrolls per qualifying applicant than the other New England states.

With recent changes in the program due to the PPP Flexibility Act, loan forgiveness will mostly be a function of whether the business has a smaller average headcount compared to the first half of 2019 and compared to mid-February 2020, and whether the business will be able to restore its mid-February 2020 headcount by the end of 2020. It remains to be seen whether Maine small businesses achieve similar levels of forgiveness compared to businesses in other New England states.

Firm Highlights

Blog

Supreme Leak: NLRA Rights

For blog followers, you likely saw last week’s post reminding you to revisit your confidentiality policies in the wake of the leaking of the Supreme Court’s draft opinion in Dobbs v. Jackson Women’s Health...

News

Verrill attorney Elizabeth Connellan Smith Elected to the Board of Governors of The College of Workers’ Compensation Lawyers

Publication/Podcast

Massachusetts Employers Beware: Any Late Wage Payment Means Liability for Triple Damages

Publication/Podcast

New Rules for Apprentices on Energy Projects Come with Uncertainty for Contractors and Developers

On January 1, 2021, a new law went into effect setting benchmarks for use of apprentices on energy generation facility construction projects. Enacted in 2019, the law was part of “An Act to Establish...

Matter

Procurement

We have assisted many owners, and contractors in design and construction contracting including: Massachusetts Institute of Technology Investment Management Company on over a billion dollars in projects in Kendall Square area of Cambridge, Massachusetts...

Blog

Supreme Leak: Religion at Work

Over the last year, our society has navigated COVID-19 and rules concerning vaccination and masking. As a society and on this blog, we have discussed regularly the role religious freedoms play in the work...

Matter

Recovery From Surety and Professional Liability Carrier for Defective Turbine and Biomass Energy Facility Components

Our client developed a biomass fired cogeneration power facility to sell power back to the grid and to support its sawmill operations. As part of this project, it entered into a $13+ million contract...

News

Groundbreaking Decision Released by Connecticut Supreme Court

In a groundbreaking decision released on May 10, 2022 arising out of an appeal argued by Verrill attorney Andrew Nevas on November 16, 2021 in front of the Connecticut Supreme Court , the Supreme...

Publication/Podcast

Connecticut’s new privacy law: What you need to know

As part of its growing privacy practice, Verrill is pleased to share this advisory on Connecticut’s new privacy law. Verrill is pleased to offer a sophisticated range of privacy and cybersecurity services. On May...

Blog

Department of Labor Guidance and Federal Initiatives Counsel a Wait-and-See Approach for 401(k) Plan Fiduciaries Interested in Cryptocurrency Options

On March 10, 2022, the Department of Labor published Compliance Assistance Release 2022-01, 401(k) Plan Investments in “Cryptocurrencies” . The Release strongly discourages the addition of cryptocurrency (and other digital asset) options to the...

Contact Verrill at (855) 307 0700