A number of medtech companies announced that they received millions of dollars in loans through the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Cutera (NSDQ:CUTR), Senseonics (NYSE:SENS), Viveve Medical (NSDQ:VIVE) and Encision (ECIA:ECIA) received approximately $15 million combined through the program administered by the U.S. Small Business Administration amid the COVID-19 pandemic.
Under the PPP, 75% of the loan proceeds must be used for payroll purposes, while the remainder can be used for payroll as well or for rent, mortgage interest or utilities.
All or a portion of the loan may be forgiven if all of the company’s employees are retained on the payroll for eight weeks after the date of the loan and it is used within the guidelines of the program. Forgiveness is also based on the company maintaining or quickly rehiring employees and maintaining salary levels.
Brisbane, Calif.-based medical aesthetics device company Cutera received loan proceeds of more than $7.1 million in a promissory note with Silicon Valley Bank. The note matures on April 21, 2022 with a fixed interest rate of 1% per annum.
Germantown, Md.-based Senseonics grabbed a loan, also from Silicon Valley Bank, worth $5.8 million. The continuous glucose monitoring technology developer’s loan accrues at a fixed interest rate of 1% per annum over a term of two years.
Women’s health company Viveve received more than $1.3 million through Western Alliance Bank with a two-year term and 1% interest, while surgical instrument maker Encision got $598,567 for a loan with the same length and interest rate.
“We’re pleased to have received this funding,” Encision president & CEO Greg Trudel said in a news release. “We appreciate the effort of Bank of America in facilitating us through the process. We look forward to bringing our team back to a renewed energy in manufacturing performance, engineering innovation and new AEM technology products introduction.”