Procurri Corporation, on Jan 3, announced that its appeal with the US’s Small Business Administration for the outcome of its application for loan forgiveness under the Paycheck Protection Program (PPP) has been declined.
The company, on Dec 9, 2022, said that its application for the second draw PPP loan forgiveness, where it applied for loans under the PPP and received the loan disbursements amounting to US$1.7 million ($2.3 million), was declined.
The group, in its Dec 9, 2022, statement, added that it had obtained the loan forgiveness for the first draw of the PPP loan during the FY2021 and thought that the second draw would be “similarly forgiven” as it was reviewed, approved and made available to the company by the participating bank. The second draw PPP loan was recognised as income in the group’s FY2021 financial statement.
The group says it will be required to repay the second draw PPP loan over a period of five years and at an interest rate of 1% per annum (p.a.). The full amount of the second draw PPP loan will be restated to loan payables in its FY2021 statement.
Shares in Procurri closed flat at 41 cents on Jan 3.
