MADISON, Wis., April 22, 2020 (GLOBE NEWSWIRE) -- Sonic Foundry, Inc. (OTC Pink Sheets: SOFO) announced today it has secured a $2.3 million loan from First Business Bank under the Paycheck Protection Program contained within the Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law on March 27, 2020.
“We’ve learned quickly that in the face of the COVID-19 pandemic, our products and solutions have never been more critical. Our teams have been working around the clock to ensure our global customer base can pivot to meet the increased demand of using video to conduct essential business, to keep virtual conferences on the schedule and to maintain classes for all students,” said Michael Norregaard, CEO of Sonic Foundry.
“As our employees work from their home bases, they can do so with the comfort and confidence that Sonic Foundry has the foundation in place to continue operations in spite of the uncertainty facing so many right now.”
The PPP allows businesses and nonprofits with fewer than 500 employees to obtain loans of up to $10 million to incent companies to maintain their workers as they manage the business disruptions caused by the COVID-19 pandemic.
The PPP loan has a term of two years, is unsecured, and is guaranteed by the U.S. Small Business Administration. The loan carries a fixed interest rate of 1 percent per annum, with the first six months of interest deferred. Under the terms of the CARES Act, the company will be eligible to apply for forgiveness of all loan proceeds used for payroll costs, rent, utilities, and other qualifying expenses during the eight-week period following receipt of the loan, provided the company maintains its employment and compensation within certain parameters during such period, and provided further that not more than 25 percent of the amount forgiven can be attributable to non-payroll costs. Any amount not forgiven is due in equal installments of principal and interest beginning seven months from the date of the promissory note through the maturity date of two years from the date of first disbursement.
About Sonic Foundry®, Inc.
Sonic Foundry (OTC: SOFO) is the global leader for video capture, management and streaming solutions. Trusted by more than 5,200 educational institutions, corporations, health organizations and government entities in over 65 countries, its Mediasite Video Platform quickly and cost-effectively automates the capture, management, delivery and search of live and on-demand streaming videos. Learn more at www.mediasite.com and @mediasite.
© 2020 Sonic Foundry, Inc. Product and service names mentioned herein are the trademarks of Sonic Foundry, Inc. or their respective owners.