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Case 1:20-bk-12043 Doc 3 Filed 07/22/20 Entered 07/22/20 17:38:25 Desc Main <br /> Document Page 14 of 42 <br /> interest rate of Libor plus 10.00% (10.19% at June 30, 2020), (iii) $5.0 million at a variable <br /> interest rate of Libor plus 10.00% (10.18% at June 30, 2020) and (iv) $3.0 million at a variable <br /> interest rate of Libor plus 10.00% (10.18% at June 30, 2020). Under the Financing Agreement, <br /> the Borrowers are required to make amortization payments equal to $125,000 on a monthly basis <br /> to pay down the principal amount of the debt. In addition, as described above, the Financing <br /> Agreement provides for the payment of exit fees and an applicable premium. <br /> ii. Unsecured Debt <br /> 28. On April 22, 2020, the Debtors entered into a promissory note evidencing an <br /> unsecured $10.0 million loan under the Paycheck Protection Program (the "PPP Loan"), which <br /> helped stabilize the Debtors' operations during COVID-19. The Paycheck Protection Program <br /> (or "PPP") was established under the recent Congressionally approved Coronavirus Aid, Relief, <br /> and Economic Security Act (the "CARES Act") and is administered by the U.S. Small Business <br /> Administration. The PPP Loan to the Debtors was made through Blue Ridge Bank, N.A. (the <br /> "Lender"). The PPP Loan has a two-year term and bears interest at a rate of 1.000% per annum. <br /> Principal and interest payments are deferred for six months. Under the CARES Act, the PPP <br /> Loan can be granted forgiveness for all or a portion of the PPP Loan. Such forgiveness will be <br /> determined, subject to limitations, based on the use of loan proceeds for payroll costs and <br /> mortgage interest, rent or utility costs and the maintenance of employee staffing levels and <br /> compensation levels. On June 3, 2020, Congress amended certain terms of the PPP. Prior to the <br /> Petition Date, the Debtors expended all proceeds under the PPP Loan. The Debtors have <br /> submitted documentation to obtain forgiveness of the PPP Loan. <br /> 29. The Debtors will disclose other unsecured obligations as of the Petition Date in <br /> the Debtors' Schedules and Statements of Financial Affairs when filed with this Court. <br /> 14 <br />