Swedish medtech company IRRAS has received approval for a loan from the US Stimulus Package.
It has entered into an unsecured promissory note under the Paycheck Protection Program (PPP) for US$832,055.
The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (CARES) that was recently approved by the United States Congress to provide a US$2.2trn package that allocates funding to small businesses to stimulate the economy and help businesses recover from the Covid-19 restrictions more quickly.
The term of the PPP loan is for two years at an annual interest rate of 1% on funds not spent within eight weeks from the date that the funds where paid out. Interest payments are deferred for the first six months of the term of the loan.
Under the terms of the CARES Act, a PPP loan recipient may apply for, and be granted, forgiveness for all or a portion of loans granted under the PPP. Such forgiveness is determined based upon the use of loan proceeds for payroll costs, rent and utility costs, and the maintenance of certain employee and compensation levels during the eight-week period.
Towards the end of April, IRRAS raised SKr217m (US$22.3m) in a fully underwritten rights issue to help commercialise its products.