Small employers have more time to apply for forgivable Paycheck Protection Program loans now that Congress has extended a late March deadline.

President Biden signed the PPP Extension Act of 2021 into law on Tuesday. The law gives small businesses two more months to apply for federal loans that can be forgiven – converted into a grant – if the borrowers meet program requirements.

The new application deadline is May 31, and the U.S. Small Business Administration, which manages the program, has another 30 days to process pending applications.

Paycheck Protection Program loans are credited with helping many small U.S. businesses pay employees and cover essential costs during pandemic-related closures and a sharp economic downturn last year. Congress replenished the program’s funding with another $284.5 billion in December and allowed more companies to apply for first- and second-round loans.

To date, Maine employers have received almost 43,000 loans worth more than $3 billion from the program.

Sen. Susan Collins, R-Maine, helped draft the original loan program created last March and she introduced the extension law that was enacted Tuesday.

Businesses that employ up to 500 people that have not applied to the program can receive a loan of up to $10 million, most of which needs to be spent on payroll.

Establishments with 300 employees or fewer that showed at least a 25 percent revenue loss last year can apply for a second forgivable loan.

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