Paycheck Protection Program Loans and Economic Injury Disaster Loans
|6 Months Ended|
Jun. 30, 2022
|Paycheck Protection Program Loans And Economic Injury Disaster Loans|
|Paycheck Protection Program Loans and Economic Injury Disaster Loans||
Note 15 – Paycheck Protection Program Loans and Economic Injury Disaster Loans
Paycheck Protection Program loans
In 2020, the Company and WCI each received loans in the amount of $76,500 and $383,342, respectively, from the Bank of Southern California and the Republic Bank of Arizona (collectively, the “PPP Loans”). The PPP Loans were forgiven in November 2020, except for $10,000 of WCI’s loan that was not eligible for forgiveness due to receipt of a $10,000 Economic Injury Disaster Loan Advance (“EIDL Advance”). However, on December 27, 2020, Section 1110(e)(6) of the CARES Act was repealed by Section 333 of the Economic Aid Act. As a result, the SBA automatically remitted a reconciliation payment to WCI’s PPP lender, the Republic Bank of Arizona, for the previously deducted EIDL Advance amount, plus interest through the remittance date. On March 16, 2021, The Republic Bank of Arizona notified WCI of receipt of the reconciliation payment and full forgiveness of the EIDL Advance. The $10,000 forgiveness is reflected as other income for the six months ended June 30, 2022, in the condensed consolidated income statements.
On February 17, 2021, Mentor received a second PPP Loan in the amount of $76,593 (“Second PPP Loan”) pursuant to Division N, Title III, of the Consolidated Appropriations Act, 2021 (the “Economic Aid Act”) as further set forth at Section 311 et. seq. of the Economic Aid Act. The Second PPP Loan was forgiven effective October 26, 2021.
There were no outstanding balances due on PPP loans at June 30, 2022 or December 31, 2021.
Note 15 – Paycheck Protection Program loans and Economic Injury Disaster Loan (continued)
Economic injury disaster loan
On July 9, 2020, WCI received an additional Economic Injury Disaster Loan in the amount of $149,900 through the SBA. The loan is secured by all tangible and intangible personal property of WCI, bears interest at 3.75% per annum, requires monthly installment payments of $731 beginning July 2021, and matures July 2050. In March 2021, the SBA extended the deferment period for payments which extended the initial payment until July 2022. The loan is collateralized by all tangible and intangible assets of WCI.
EIDL loan balances at June 30, 2022 consist of the following:
Schedule of EIDL loan balances
Interest expense on the EIDL Loan for the three months ended June 30, 2022 and 2021 was $1,473 and $1,420, respectively.
Interest expense on the EIDL Loan for the six months ended June 30, 2022 and 2021 was $2,917 and $2,811, respectively.
No definition available.
Paycheck Protection Program Loans and Economic Injury Disaster Loans [Text Block]
No definition available.