Canada NewsWire
TORONTO, April 21, 2020
TORONTO, April 21, 2020 /CNW/ - SPOT COFFEE (CANADA) LTD. (TSX-V: SPP) ("SPoT" or the "Company") is pleased to report that the Company's subsidiaries have received approval from their lender for loans in the aggregate amount of U.S.$1,065,206 pursuant to the United States Small Business Administration ("SBA") program identified as the Coronavirus Aid, Relief, and Economic Security ("CARES") Act (the foregoing are collectively referred to as the "SBA-CARES Loans").
The Company will be able to use the proceeds of the SBA-CARES Loans for various items, including:
Furthermore, the SBA-CARES Loans also have the following characteristics:
SBA-EIDL Update
As noted in the Company's news release dated April 6, 2020, in addition to the SBA-CARES Loans, the Company's US subsidiaries have also applied for a second set of loans under the SBA Economic Injury Disaster Loan ("EIDL") program (the "SBA-EIDL Loans"). The foregoing applications are still pending and are subject to determination by the SBA.
Loans under this program are in fact working capital loans that:
Eligibility for these working capital loans is based on:
SPoT's management has reviewed its eligibility for the SBA-EIDL Loans and believes that SPoT meets the criteria for approval. SPoT will announce the SBA determination on this loan application once it has been completed.
Canada Emergency Business Account
SPoT has also been approved for the Canada Emergency Business Account, pursuant to which it has obtained a $40,000 line of credit at 0% interest, with no minimum monthly principal payments required until December 31, 2022.
About Spot Coffee
Spot Coffee has been designing, building and operating company-owned and franchise community cafés in the northeastern United States for over 25 years. Spot's cafés provide their customers with the highest quality service, signature made-to-order meals and award-winning micro-roasted coffee. Each Spot café is distinctively designed to suit the local neighbourhood. creating a warm and friendly gathering place for the community. Spot's commercial business focuses on the sale of roasted coffee beans to food service and grocery chains, business offices, and resellers such as universities and hospitals.
We seek Safe Harbor.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
SOURCE Spot Coffee (Canada) Ltd.
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