Workhorse Group Inc., an American technology company focused on providing sustainable and cost-effective electric vehicles to the last mile delivery sector, recently entered into a Paycheck Protection Program Term Note with PNC Bank under the Paycheck Protection Program (PPP), part of the recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act) administered by the U.S. Small Business Administration (SBA).
Under the terms of PNC Note, Workhorse received total proceeds of $1,411,000. In accordance with the requirements of the CARES Act, Workhorse says it will use proceeds primarily for payroll costs. During the first six months of the PNC Note, neither principal nor interest will be due and payable during this deferral period and a large portion of the loan could be forgiven should the company meet certain qualifications under the program.
“We are appreciative of the federal government’s recognition and support of small business needs during an unprecedented time in our nation’s history,” said Workhorse Chief Financial Officer Steve Schrader. “Because of the proactivity of our leadership team in responding to the requirements of the SBA PPP application process, we were able to access this relief swiftly and without issue. These funds will go a long way in allowing us to continue to meet our payroll needs and, as an essential business supporting the package delivery industry, keeping all our employees safe and working is critical through this challenging period.
“More generally, over the past year-plus period, we’ve seen a growing interest in our ground-based delivery vehicles with their integrated Horsefly drone capabilities as America and the global economy has become increasingly reliant on online ordering and at-home delivery. The various industry shutdowns over the past few weeks have made this demand greater and the need more immediate. We are committed to supporting our customers and partners as they perform these vital delivery and support services during this period.”
Editor’s Note: As of press time, AMN has learned that the first round of funding for this program has already been exhausted. According to the Auto Care Association, “while Congress had appropriated $349 billion dollars for this program, those funds have now been exhausted in a matter of two weeks.” Auto Care urges its members to contact their legislators to let them know how important continuing this program is for your company and other small businesses that comprise our industry.
