- Protech Home Medical (TSXV:PTQ) has gained approval for a C$5.97 million loan under the Payroll Protection Program (PPP)
- Protech will use the loan to maintain its workforce during the COVID-19 pandemic
- The PPP originates from the US Coronavirus Aid, Relief and Economic Security (CARES) Act
- The PPP allows US small businesses with under 500 employees to obtain loans of up to C$10 million
- Protech’s share price is up 5.88 per cent, and is currently trading for $0.90 per share
Protech Home Medical (TSXV:PTQ) has gained approval for a C$5.97 million loan under the Payroll Protection Program (PPP).
The PPP is a US loan program worth C$491.7 billion, administered by the US Small Business Administration. It originated from the US Coronavirus Aid, Relief and Economic Security (CARES) Act.
The PPP allows US small businesses, with under 500 employees, to obtain loans of up to $10 million. As a US small business, Protech qualifies, and will use the loan to maintain its workforce during the pandemic.
The loan has a two-year term, is unsecured, and guaranteed by the US Small Business Administration. It has a fixed interest rate of one per cent per annum, with the first six months of interest deferred. The loan will be forgiven if the money is used to cover payroll costs, rent and utilities during the eight weeks following its origination date.
Protech’s CEO, Greg Crawford, said that the funds provided are a welcomed demonstration of support from the Federal Government.
“We are grateful to see the show of support to American businesses and their employees. We maintain a payroll in excess of just over 375 employees. This loan will provide additional flexibility in covering most employee-related costs in the near-to-medium term.
“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,” Greg said.
Protech’s share price is up 5.88 per cent, and trading for $0.90 per share, as of 11:59am EST.
