ST. LOUIS — A St. Louis public company has entered into a loan agreement for $2.375 million through the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act.
Allied Healthcare Products (Nasdaq: AHPI), based on The Hill, received the loan April 22 from Jefferson Bank and Trust Co. with administration by the SBA, according to a regulatory filing. The company said it will use the money for payroll costs and other permitted uses.
The loan is expected to mature April 13, 2022 and has a 1% interest rate.
Allied, which manufactures medical gas construction equipment, respiratory therapy equipment, home health care products and emergency medical supplies, plans to seek forgiveness of the loan to “the maximum extent permitted but cannot guarantee whether or to what extent such forgiveness will be granted.”
Under the CARES act, loan forgiveness is available for payroll costs, rent payments, mortgage interest and utility payments during the eight week period beginning on the loan origination date. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%, according to the filing.
Allied had fiscal 2019 revenue of $31.4 million.
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