engage:BDR Ltd (ASX:EN1) has received approval from the US Small Business Administration (SBA) for an economic injury disaster loan (EIDL) and the initial amount will be US$150,000 (~A$230,000), which is the program maximum.
The company anticipates additional legislation to be passed in the coming months, resulting in an increase of the EIDL and PPP funds, as the original cap on the program was US$2 million.
Terms for this funding include a 30-year payment term, 3.75% interest rate, monthly payments of $731 starting 12 months after closing and a US$100 filing fee.
The company has received a shareholder inquiry about any potential for EN1 to return any SBA funding (PPP or EIDL) because EN1 is a listed entity.
EN1 is a listed entity in Australia, not the US and the entity which received funding, engage:BDR LLC, is a private US corporation with all of its full-time employees working within the US borders. Therefore, the company does not see any issues or potential for returning any SBA funding.
The company is seeing daily improvement across key metrics, with daily revenue 20% better in the first half of May compared to the same period in April.
Increasing advertiser demand has seen the revenue improve and this trend is expected to continue throughout the balance of May through the end of the June quarter.
The company’s revenue until May 16 was A$630,000 compared to A$525,000 to the same date in April.