PROTECH HOME MEDICAL SECURES $5.97 MILLION LOAN UNDER PAYROLL PROTECTION PROVISION OF CARES ACT
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CINCINNATI, April 20, 2020 - Protech Home Medical Corp. (the "Company" or "Protech") (TSXV:PTQ), a healthcare services company with operations in the U.S., is pleased to announce that it has been approved for a CAD$5.97 million loan under the Payroll Protection Program ("PPP") administered by the U.S. Small Business Administration.
The PPP is a US$349 billion loan program that originated from the U.S. Coronavirus Aid, Relief and Economic Security (CARES) Act. As a U.S. Small Business, Protech qualifies for the PPP which allows businesses with fewer than 500 employees to obtain loans of up to US$10 million to assist companies in maintaining their workers through the COVID-19 pandemic.
"The funds provided by the PPP is a welcomed demonstration of support by our Federal Government and we are grateful to see the show of support to American businesses and their employees," commented Greg Crawford, Chairman and CEO of Protech. "We maintain a payroll in excess of just over 375 employees and this loan will provide additional flexibility in covering most employee-related costs in the near-to medium-term. The loan is forgivable if we maintain our payroll at current levels and it is our plan to do exactly that. This increased liquidity enhances our ability to maintain our payroll as we continue to operate strongly during this pandemic."
"It has always been the case at Protech, but never more so than today in the face of this pandemic, that our employees are our most valuable asset. Our sincere thanks go out to them for the resilience they have shown during these unprecedented times."
The loan has a term of two years, is unsecured, and is guaranteed by the U.S. Small Business Administration. The loan bears interest at a fixed rate of 1.0 percent per annum with the first six months of interest deferred and will be forgiven if the loan proceeds are used by Protech to cover payroll costs (including benefits), rent and utilities during the eight-week period following the loan origination date. Protech expects to meet the requirements for full loan forgiveness. The forgiven amount is not included in taxable income.
Protech provides home delivery and efficient online set-up of equipment for, primarily, chronic conditions. The Company operates out of 42 locations in 10 states with over 17,000 referring physicians and approximately 80,000 current active patients.