The Billerica, Mass.-based joint replacement implants company entered into the promissory note totaling $4,719,800 with East West Bank in an effort to mitigate the negative impacts of the COVID-19 pandemic. The Coronavirus Aid, Relief & Economic Security Act authorized the SBA to offer low-interest rate loans to qualified small businesses under the PPP.
Under the terms of the PPP, all or a portion of the loan may be forgiven if the funds are used for payroll costs (at least 75% of the forgiven amount must have been used for payroll), interest on other outstanding debt, rent and utilities, according to a news release.
Last month, Conformis announced that it was furloughing a third of its employees and tossing out its 2020 financial guidance amid the coronavirus crisis. The furlough included approximately 80 employees and substantially all of the company’s temporary workforce, effective March 23.
Conformis has been reached for comment on how the PPP payment might impact its furloughed employees or other aspects of its business. This story may be updated.