- Digital marketing company engage:BDR (EN1) has secured US$150,000 (approximately A$230,000) under the U.S. Coronavirus Aid, Relief, and Economic Security (CARES) Act
- The funding was greenlit by the U.S. Small Business Administration (SBA) and is specifically categorised as an economic injury disaster loan (EIDL)
- This loan supports small businesses in overcoming the loss of revenue experienced due to the pandemic
- Further, responding to a shareholder enquiry about its eligibility to receive U.S. funding, engage:BDR explained the capital was received by its U.S. business, which currently has full-time workers within the country
- engage:BDR is up 10 per cent on the market this morning, selling shares for 1.1 cents each
Digital marketing company engage:BDR (EN1) has secured US$150,000 (approximately A$230,000) under the U.S. Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The funding was greenlit by the U.S. Small Business Administration (SBA) and is specifically categorised as an economic injury disaster loan (EIDL).
This loan supports small businesses in overcoming the loss of revenue experienced due to the pandemic.
That capital is the limit a business can currently receive under the program. However, the company is anticipating additional legislation will be passed in the coming months. This means there could be a potential increase in EIDL and paycheck protection program (PPP), as the original cap on this program was US$2 million (roughly A$3.06 million).
This loan included a 20-year payment term with a 3.75 per cent interest rate.
Shareholder enquiry
engage:BDR has also provided clarification on a shareholder enquiry, which queried EN1’s potential to receive U.S. funding as it is listed on the Australian Securities Exchange.
The company explained that it was its private U.S. corporation which received the funding. Its U.S. firm has full-time employees working in the United States.
engage:BDR is up 10 per cent on the market this morning, selling shares for 1.1 cents each at 10:12 am AEST.