SigmaTron International, Inc. Reports Full Forgiveness of $6.3 Million Loan Under SBA Payroll Protection Program
July 13 2021 - 3:30PM
SigmaTron International, Inc. (NASDAQ: SGMA), an electronic
manufacturing services company, today announced that it received
full forgiveness of its Small Business Administration (“SBA”)
Paycheck Protection Program (“PPP”) loan in the amount of
approximately $6.3 million, which it had received pursuant to the
Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”)
on April 23, 2020 and which was reported in a press release the
same day. The Company was notified of the forgiveness on Friday,
July 9, 2021 and it covers all principal and accrued interest. The
accounting for the forgiveness will be reflected in the Company’s
first quarter financial statements for fiscal year 2022.
Gary R. Fairhead, President, CEO and Chairman, said, “We
believed that the PPP loan would be essential to support our U.S.
employees and factories as they worked through the pandemic and the
volatile economy it had created and, indeed, that was the case. We
remain thankful for 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 ability to achieve the expected benefits of
acquisitions as well as the expenses of acquisitions; 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, including the phase-out of LIBOR; the ability to meet
the Company’s financial and restrictive covenants under its loan
agreements; 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
and variants 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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