Workhorse Receives $1.4 Million From U.S. Small Business Administration Through its CARES Act Paycheck Protection Program
CINCINNATI, April 16, 2020 /PRNewswire/ -- Workhorse Group Inc. (NASDAQ: WKHS) ("Workhorse" or "the Company"), an American technology company focused on providing sustainable and cost-effective electric vehicles to the last mile delivery sector, recently entered into a Paycheck Protection Program Term Note ("PNC Note") with PNC Bank under the Paycheck Protection Program ("PPP") of the recently enacted Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") administered by the U.S. Small Business Administration ("SBA").
Under the terms of PNC Note, Workhorse received total proceeds of $1,411,000. In accordance with the requirements of the CARES Act, the Company will use proceeds primarily for payroll costs. During the first six months of the PNC Note, neither principal nor interest shall be due and payable during this deferral period and a large portion of the loan could be forgiven should the Company meet certain qualifications under the program.
"We are appreciative of the federal government's recognition and support of small business needs during an unprecedented time in our nation's history," said Workhorse CFO Steve Schrader. "Because of the proactivity of our leadership team in responding to the requirements of the SBA PPP application process, we were able to access this relief swiftly and without issue. These funds will go a long way in allowing us to continue to meet our payroll needs and, as an essential business supporting the package delivery industry, keeping all our employees safe and working is critical through this challenging period.
"More generally, over the past year-plus period, we've seen a growing interest in our ground-based delivery vehicles with their intgrated Horsefly drone capabilities as America and the global economy has become increasingly reliant on online ordering and at-home delivery. The various industry shutdowns over the past few weeks have made this demand greater and the need more immediate. We are committed to supporting our customers and partners as they perform these vital delivery and support services during this period."
For additional details, please reference the Form 8-K filed with the U.S. Securities and Exchange Commission on April 16, 2020.
About Workhorse Group Inc.
Workhorse Investor Relations Contact:
Matt Glover and Tom Colton
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SOURCE Workhorse Group Inc.