SigmaTron International, Inc. Receives $6.3 Million Loan Under SBA Payroll Protection Program
April 23 2020 - 4:00PM
SigmaTron International, Inc. (NASDAQ: SGMA), an electronic
manufacturing services company, today announced that it received a
Small Business Administration (“SBA”) Payroll Protection Loan
(“PPP”) in the amount of approximately $6.3 million, pursuant to
the Coronavirus Aid, Relief and Economic Security Act (the “CARES
Act”) on April 23, 2020. The PPP loan matures on April 23,
2022 and bears interest at the rate of 1.00% per annum.
Payments of principal and interest commence on November 23,
2020. The loan may be prepaid at any time prior to maturity
with no penalty.
A portion or all of the PPP loan may be forgiven by the SBA upon
application by SigmaTron. Eligible expenses to be forgiven include
U.S. payroll costs, continuation of healthcare costs, mortgage
interest, rent and utilities among others. 75% of eligible
expenses must be used for payroll related costs and up to 25% may
be used for other eligible expenses to qualify for
forgiveness. A portion of the PPP may not be forgiven if
total headcount declines during the 8-week forgiveness
period. For all eligible expenses that are forgiven, the
amount forgiven is applied to reduce the outstanding
principal.
SigmaTron intends to use all of the proceeds from the PPP loan
as eligible expenses and expects that most, if not all, of the
proceeds, including the interest accrued on the principal, will be
eligible for forgiveness.
Gary R. Fairhead, President, CEO and Chairman, said, “We believe
that the PPP loan will be essential to support our U.S. employees
and factories as they work through the current pandemic and the
volatile economy it has created. We appreciate the
government’s foresight in creating this Program.”
Headquartered in Elk Grove Village, IL, SigmaTron International,
Inc. is an electronic manufacturing services company that provides
printed circuit board assemblies and completely assembled
electronic products. SigmaTron International, Inc. operates
manufacturing facilities in Elk Grove Village, Illinois; Acuna,
Chihuahua, and Tijuana Mexico; Union City, California; Suzhou,
China, and Ho Chi Minh City, Vietnam. SigmaTron
International, Inc. maintains engineering and materials sourcing
offices in Elgin, Illinois and Taipei, Taiwan.
Note: This press release contains
forward-looking statements. Words such as “continue,”
“anticipate,” “will,” “expect,” “believe,” “plan,” and similar
expressions identify forward-looking statements. These
forward-looking statements are based on the current expectations of
the Company. Because these forward-looking statements involve
risks and uncertainties, the Company’s plans, actions and actual
results could differ materially. Such statements should be
evaluated in the context of the direct and indirect risks and
uncertainties inherent in the Company’s business including, but not
necessarily limited to, the Company’s continued dependence on
certain significant customers; the continued market acceptance of
products and services offered by the Company and its customers;
pricing pressures from the Company’s customers, suppliers and the
market; the activities of competitors, some of which may have
greater financial or other resources than the Company; the
variability of the Company’s operating results; the results of
long-lived assets impairment testing; the collection of aged
account receivables; the variability of the Company’s customers’
requirements; the availability and cost of necessary components and
materials; the ability of the Company and its customers to keep
current with technological changes within its industries;
regulatory compliance, including conflict minerals; the continued
availability and sufficiency of the Company’s credit arrangements;
the ability to meet the Company’s financial covenant; changes in
U.S., Mexican, Chinese, Vietnamese or Taiwanese regulations
affecting the Company’s business; the turmoil in the global economy
and financial markets; the spread of COVID-19 (commonly known as
“Coronavirus”) which has threatened the Company’s financial
stability by causing a decrease in consumer spending, has
negatively affected global economies, caused a disruption to the
Company’s global supply chain, and caused the Company to incur
government mandated closures of factories or reduced production
tied to lower staffing; the stability of the U.S., Mexican,
Chinese, Vietnamese and Taiwanese economic, labor and political
systems and conditions; currency exchange fluctuations; and the
ability of the Company to manage its growth. These and other
factors which may affect the Company’s future business and results
of operations are identified throughout the Company’s Annual Report
on Form 10-K, and as risk factors, may be detailed from time to
time in the Company’s filings with the Securities and Exchange
Commission. These statements speak as of the date of such
filings, and the Company undertakes no obligation to update such
statements in light of future events or otherwise unless otherwise
required by law.
For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
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