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- Medical software technology company ImpediMed (IPD) has received approximately US$1.1 million from the U.S. CARES loan
- The U.S. CARES loan is designed to help businesses keep their workforce employed during the pandemic
- The loan will be forgiven as long as 75 per cent of the money is used for employees payroll
- However, if any portion of the loan is not forgiven, the loan will have a maturity of two years and an interest rate of one per cent
- On market close, ImpediMed remains steady, trading for 3.9 cents per share
Medical software technology company ImpediMed (IPD) has received a U.S. CARES act loan of approximately US$1.1 million.
The loan is part of the Paycheck Protection Program (PPP) which is under the U.S. Coronavirus Aid, Relief and Economic Security Act (CARES).
The PPP program is administrated by the U.S. Small Business Administration (SBA), which awards loans to help businesses keep their workforce employed during the coronavirus crisis.
ImpediMed is expecting the loan to be forgiven, as long as the company uses the funds to maintain the employees and at least 75 per cent of the money is used for payroll.
Additional terms under the PPP
Under the program, Impedimed can defer its loan payments for six months.
“No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees,” the company said.
However, if any portion of the loan is not forgiven, the loan will have a maturity of two years and an interest rate of 1 per cent.
On market close, ImpediMed remains steady, trading for 3.9¢ per share.
