Blonder Tongue Labs, Inc. (NYSE:BDR) rose Wednesday after the company announced it received forgiveness of $1,768,762 of loan proceeds previously received under the Paycheck Protection Program.
The company, headquartered in Old Bridge, New Jersey, announced Tuesday the funds were paid out under the federal PPP Program. The PPP was established as part of the Coronavirus Aid, Relief and Economic Security Act and is administered by the U.S. Small Business Administration
On June 30, the Company received notification from the Lender that the SBA had approved the Company's PPP Loan forgiveness application for the entire PPP Loan amount. The forgiveness of the PPP Loan will be recognized during the Company's second quarter ending June 30.
Blonder Tongue Chief Financial Officer Eric Skolnik noted "We were pleased to receive the notice of forgiveness. The PPP program became available to American based manufacturers like Blonder Tongue and other small and medium sized U.S. companies at a critical moment in April last year, when the pandemic was having a tremendous impact on our ability to maintain sales levels and manage our liquidity.
"The PPP funding enabled us to keep our staff off of unemployment and allowed us a needed bridge to allow for the market to begin its recovery and for us to manage restructuring to get through a period of time when as many as 50% of our customers had temporarily closed their doors last year."
BDR shares lost seven cents, or 4.6%, to $1.44.
