LOS ANGELES, April 30, 2020 (GLOBE NEWSWIRE) -- Omni-Lite Industries Canada Inc. (the “Company” or “Omni-Lite”; TSXV: OML), a leading developer and manufacturer of mission critical, precision components utilized by Fortune 100 companies in the defense and aerospace industries, today announced that it has received loan proceeds in the amount of $818,700 (the “PPP Funds”) and entered into a loan agreement with City National Bank pursuant to the Paycheck Protection Program (“PPP”). The PPP was established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) in order to enable small businesses to pay employees during the economic slowdown caused by COVID-19 by providing forgivable loans to qualifying businesses for up to 2.5 times their average monthly payroll costs. The amount borrowed by the Company under the PPP is eligible to be forgiven provided that (a) the Company uses the PPP Funds during the eight week period after receipt thereof, and (b) the PPP Funds are only used to cover payroll costs (including benefits), rent, mortgage interest, and utility costs. The amount of loan forgiveness will be reduced if, among other reasons, the Company does not maintain staffing or payroll levels.
Principal and interest payments on any unforgiven portion of the PPP Funds (the “PPP Loan”) will be deferred for six months and will accrue interest at a fixed annual rate of 1%. Additionally, the PPP Loan balance will carry a two-year maturity date. There is no prepayment penalty on the PPP Loan.
“We are appreciative of the PPP Funds we have received. The safety and wellbeing of our employees and suppliers and our ability to meet our customer requirements is our highest priority. The PPP Funds will provide the flexibility necessary to cover our employee related costs and continue to operate at full staff during this unprecedented health crises,” commented David Robbins, President and CEO of Omni-Lite.
About Omni-Lite Industries Canada Inc.
Omni-Lite Industries Canada Inc. is an innovative company that develops and manufactures mission critical, precision components utilized by Fortune 100 companies in the aerospace and defence industries.
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