The US Small Business Association administers the PPP under the CARES (Coronavirus Aid, Relief and Economic Security) law. Under the P3, 75% of the loan proceeds must be used for payroll purposes, while the rest can also be used for payroll or for rent, mortgage interest or utilities.
All or part of the loan can be canceled if all employees of the company are retained on the payroll for eight weeks after the date of the loan and it is used according to program guidelines. Forgiveness also relies on retaining or rehiring employees promptly and maintaining salary levels.
Neuronetics, which is developing a transcranial magnetic stimulation system to treat major depressive disorder, has a promissory note with Silicon Valley Bank for nearly $ 6.4 million with an interest rate of 1% per year.
The note matures on April 21, 2022, and Neuronetics is required to pay all interest accrued on the loan that is not canceled in accordance with the PPP on November 21, 2020, according to a Press release.
Non-surgical weight loss treatment developer Obalon executed a promissory note to Silicon Valley Bank for a principal amount of $ 430,047. His loan has the same interest rate as Neruonetics and matures on April 22, 2022.