Can you link to the sec filing of the loan? I don't remember this loan and I wouldn't mind finding out the use of the money either.
Ideas off the top of my head are the fact that credit became nearly impossible to obtain and $4M was a substantial amount compared to market cap at the time and they were unsure when they would be able to obtain another loan (wanted more liquidity). They also acquired 2 or 3 smaller companies in 2009 for about the same amount in addition to the Stephenson acquisition.
Ctrl-F "Bank of America" and it'll bring you straight to it.
I also noticed that the amount of the loan was almost exactly the same as the sum they paid for their 2009 acquisitions, but it was taken out two months before their first acquisition and more than half a year before their other ones. I emailed their investor relations department about this, but never received a reply.
It's true that for many companies it's wise to take advantage of the super low interest rates now, but only if you can put that money to use and earn a higher return than your borrowing rate. As far as I can tell, UFPT is just letting that cash sit there. Combined with their liberal use of stock awards and significantly higher than average executive compensation for a company their size, it makes me concerned about how they're handling their finances. Their outsized growth the past few years has made this a non-issue for investors so far, but I'm worried about what will happen when their growth slows down.