engage:BDR receives funding support from US government

By Trevor Hoey. Published at May 25, 2020, in Technology

engage:BDR (ASX:EN1; EN1O) has received approval for SBA EIDL funding under its application for the US CARES Act EIDL (economic injury disaster loan).

The initial funding for EN1 is US$150,000 or $230,000 which is the program’s current maximum.

Management expects additional legislation to be passed in the coming months, potentially resulting in an increase in the EIDL and PPP funds as the original cap on this program was US$2 million.

The terms for this funding include a 30-year payment term, 3.75% interest rate, monthly payments of $731 starting 12 months after closing and a US$100 filing fee.

The company clarified one aspect of the funding after receiving an inquiry regarding the potential for EN1 to return any SBA funding (PPP or EIDL) because it is a listed entity.

On this note, the key factor is that EN1 is a listed entity in Australia, not the US.

The entity which received funding, engage:BDR, LLC, is a private US corporation, with all of its full-time employees working within the US borders.

Management does not foresee any issues or potential for returning SBA funding.

There have been a small number of listed, multi-billion-dollar market cap companies in the US that have voluntarily returned their funding, but EN1 does not fit into this category.

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