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Be the first with the news that moves the market- SPoT Coffee’s (TSXV:SPP) subsidiaries have received approval for approximately C$1.5 million in COVID-19 relief loans
- The loan program originates from the US Coronavirus Aid, Relief, and Economic Security Act (CARES)
- SPoT will use the loans for payroll costs, group healthcare benefits, rent and utilities, and employee wages
- The company has been approved for the Canada Emergency Business Account, and applied for the SBA Economic Injury Disaster Loan program
- SPoT Coffee (SPP) remains steady and is trading for 4.5 cents per share, with a market cap of $6.1 million
SPoT Coffee (TSXV:SPP) subsidiaries have received approval for approximately C$1.5 million in COVID-19 relief loans.
The loans come from a US Small Business Administration (SBA) loan program. The program originates from the US Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act is providing relief to small businesses, allowing them to maintain their workforce during the COVID-19 pandemic.
SPoT will use the funds to cover payroll costs, rent and utility payments, and interest on other debt obligations. The company will also use it for group healthcare benefits during periods of paid sick leave, medical leave, or family leave. Furthermore, the loans will address insurance premiums, employee wages, commission, and other similar compensations.
SPoT has also gained approval for the Canada Emergency Business Account. As a result, the company has obtained a $40,000 line of credit at zero per cent interest. The company will not have to make any minimum monthly principal payments until December 31, 2022.
SPoT’s US subsidiaries have also applied for another set of loans, under the SBA Economic Injury Disaster Loan program. However, the approval for those working capital loans is still pending and will be determined by the SBA.
If the subsidiaries qualify for the EIDL loans, they could receive up to $2.8 million in funds. The proposed amount will depend on the company’s eligibility and carry an interest rate of 3.75 per cent per annum.
The company will not be able to use the loans to replace lost sales or profits, or for expansion efforts. It could, however, use them to pay fixed debts, payroll, accounts payable, and other invoices impacted by COVID-19.
SPoT Coffee (SPP) remains steady, and is trading for 4.5 cents per share, as of 9:55am EST.
