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W W W. M A I N E B I Z . B I Z 17 A P R I L 5 , 2 0 2 1 F O C U S B A N K I N G / F I N A N C E / I N S U R A N C E payroll during the pandemic right after mandatory closures went into effect, threatening their survival. In the words of Maine Bankers Association CEO Chris Pinkham, "PPP was a rescue, a temporary cash infusion to carry the shock of no work, no income through an unknown period of time until the pandemic was under control." Initially, it allowed qualified bor- rowers to cover up to eight weeks of payroll taxes plus benefits as well as other costs including rent and utilities and mortgage. at period was later extended to 24 weeks. e program got off to a bumpy start, running out of the original $349 billion within the first two weeks, then restarted with $320 billion via a second piece of legislation. One of the reasons the money was quickly depleted was the widespread uncertainty at the start of the pandemic, prompting even large employers to chase any funding they could; that included Economic Injury Disaster Loans, which also ran out of appropriated funds early on. With the PPP, there was also blow- back about some of the country's largest restaurant and hotel chains unfairly squeezing out struggling small busi- nesses though many reportedly returned or cancelled those loans. More recently, the Government Accountability Office has called for more planning and SBA oversight of the program, which is due to wrap up on May 31. Administered by the SBA with support from the U.S. Treasury Department, the program relies on banks to do the heavy lifting. On how it worked in practice, Pinkham says, "e federal government delivered the money, and financial insti- tutions coordinated the applications, the processing of the loans and ultimately, the forgiveness of the debt, through a massive process of data collection and transmission. Banks delivered the results of the PPP program to Main Street." Community banks nationwide punched above their weight, as noted in a December 2020 report by the Conference of State Bank Supervisors. In Maine where all but four of the state's top 20 banks by deposit market share are Maine-based community banks, even bankers new to SBA lending HOW CAN WE HELP YOU FIND YOUR At Machias, "YES!" means empowering the people, businesses, and organizations we serve to reach their full potential. So, what does "YES!" mean to you? Let's find it together. Machias Savings Bank. MachiYES! Member FDIC machiassavings.bank C O N T I N U E D O N PA G E 2 0 » P H O T O / C O U R T E S Y O F B I D D E F O R D S AV I N G S Marjorie McAvoy, a bank branch manager, said when clients didn't qualify for PPP loans she tried to find alternatives. Paycheck Protection Program key dates 2020 March 27: PPP is created when the $2.2 trillion federal stimulus bill Coronavirus Aid, Relief and Economic Security (CARES) Act is signed into law. March 31: SBA releases general guidance for lenders and borrowers. April 24: Paycheck Protection Program and Healthcare Enhancement Act restarts program with another $320 billion. June 5: PPP Flexibility Act signed into law; expands loan forgiveness from 8 weeks of eligible costs to 24 weeks, or to Dec. 31, 2020. Dec. 27: Consolidated Appropriations Act, 2021 signed into law; includes $284.5 billion for a new round of forgivable loans. 2021 Feb. 22: Businesses and nonprofits with fewer than 20 employees get more time to submit applications; SBA makes changes to open the program to more underserved businesses. March 11: American Rescue Plan Act signed into law; provides additional $7.25 billion for nonprofits and digital news services. May 31: PPP is due to expire, per the PPP Extension Act of 2021.

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