THE WOODLANDS, TEXAS, US — RiceBran Technologies (RIBT) has received a $1.8 million loan under the CARES Act in order to ensure payroll and retain workers as the coronavirus (COVID-19) pandemic continues.
The $1.8 million loan is through the Spirit of Texas Bank under the United States Small Business Administration’s (SBA) Payroll Protection Program (PPP) contained within the new Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“RiceBran is thankful the CARES Act is supporting small US businesses and their employees during this unprecedented time,” said Brent Rystrom, president and chief executive officer of RBIT. “Along with the proceeds raised through our secondary offering in December 2019, and unused capacity from our factoring facility with Republic Business Credit, the $1.8 million PPP loan further strengthens our balance sheet. While our company continues to be fully operational, this increased liquidity will help us to maintain payroll and support our business through the difficulties caused by the COVID-19 pandemic.”
The two-year, SBA administered PPP loan has an interest rate of 0.98% per annum, with initial principal and interest payments deferred for six months. PPP loan proceeds primarily will be used for payroll costs and to retain workers, and, if used for payroll and certain other permitted expenses, the principal and unpaid interest may be forgiven.
RBIT is a specialty ingredient company servicing the food, animal nutrition and specialty products market. It produces and markets value-added products derived from rice bran as well as rice, rice co-products, barley and oat products.
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