ELK GROVE VILLAGE, IL – SigmaTron International has received a Small Business Administration Payroll Protection Loan of approximately $6.3 million, pursuant to the Coronavirus Aid, Relief and Economic Security Act on Apr. 23.

The PPP loan matures on April 23, 2022, and bears interest at the rate of 1% per annum. Payments of principal and interest commence on Nov. 23 this year. The loan may be prepaid at any time prior to maturity with no penalty.

A portion or all the PPP loan may be forgiven by the SBA upon application by SigmaTron. Eligible expenses to be forgiven include US payroll costs, continuation of healthcare costs, mortgage interest, rent and utilities, among others. Seventy-five percent 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 eight-week forgiveness period.  For all eligible expenses forgiven, the amount forgiven is applied to reduce the outstanding principal.

SigmaTron intends to use all the proceeds from the PPP loan as eligible expenses and expects most, if not all, of the proceeds, including the interest accrued on the principal, will be eligible for forgiveness.

“We believe the PPP loan will be essential to support our US employees and factories as they work through the current pandemic and the volatile economy it has created,” said Gary R. Fairhead, president, CEO and chairman. “We appreciate the government’s foresight in creating this Program.”   

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