SMITH-MIDLAND CORPORATION (OTCMKTS:SMID) Files An 8-K Entry into a Material Definitive Agreement

SMITH-MIDLAND CORPORATION (OTCMKTS:SMID) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01 Entry into a Material Definitive Agreement.

The disclosures set forth in Item 2.03 are incorporated by reference to this item.
ITEM 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Regisrant.
Note Payable
On April 16, 2020, Smith-Midland Corporation (the “Company”) completed a note payable secured under the Paycheck Protection Program (the “PPP”) to Summit Community Bank (the “Bank”) in the amount of $2,691,700. The interest rate per the Promissory Note, dated April 16, 2020 and executed by the Company in favor of the Bank (the “Promissory Note”), is fixed at 1.00% per annum, with principal and interest payments starting November 16, 2020, payable monthly over 18 months in the amount of $151,508. The loan matures on April 16, 2022. The proceeds of the loan must be utilized to the requirements of the PPP, and all or a portion of the loan may be forgiven in accordance with the PPP applicable rules, regulations, and guidelines. to the Business Loan Agreement, dated April 16, 2020, executed by the Company in favor of the Bank (the “Business Loan Agreement”), the Bank may accelerate the loan in the event of a default under the foregoing loan documents or any other loan agreement with the Bank. Under the current loan covenants with the Bank, the Company is limited to annual capital expenditures of $3.5 million and must maintain tangible equity of $10.0 million. The foregoing does not purport to be complete and is qualified in its entirety to Promissory Note and the Business Loan Agreement, attached hereto as Exhibits 10.1 and 10.2, respectively, and incorporated herein by reference.
ITEM 9.01 Financial Statements and Exhibits.

EX-10.1 2 promissorynote.htm PROMISSORY NOTE DATED APRIL 16,…
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Smith-Midland Corporation invents, develops, manufactures, markets, leases, licenses, sells and installs a range of precast concrete products for use in the construction, highway, utilities and farming industries, through its subsidiaries. The Company’s precast and barrier rental customers are primarily general contractors and federal, state, and local transportation authorities located in the Mid-Atlantic, Northeastern, Midwestern and Southeastern regions of the United States. It offers products, including Easi-Set SlenderWall Lightweight Construction Panels, Easi-Set Sierra Wall, Easi-Set Precast Building and Easi-Span Expandable Precast Building, Easi-Set Utility Vault, SoftSound Soundwall Panels, Beach Prisms Erosion Control Modules and H2Out Secondary Drainage System. Its precast subsidiaries also produce farm products, such as cattleguards and water and feed troughs, as well as custom order precast concrete products with various architectural surfaces.

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