STAFFING 360 SOLUTIONS, INC. (NASDAQ:STAF) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On May 12, 2020, Monroe Staffing Services, LLC (“Monroe Staffing”), an indirect subsidiary of Staffing 360 Solutions, Inc. (the “Company”), entered into a note (the “Note”) with Newton Federal Bank (the “Bank”), to the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration. The Note is dated May 12, 2020. The principal amount of the Note is $10,000,000.00.
In accordance with the requirements of the CARES Act, the Company and Monroe Staffing (the “Borrower”) will use the proceeds from the Note in accordance with the requirements of the PPP to cover certain qualified expenses, including payroll costs, rent and utility costs. Interest accrues on the Note at the rate of 1.00% per annum. The Borrowers may apply for forgiveness of the amount due under the Note, in an amount equal to the sum of qualified expenses under the PPP. The Borrowers intend to use the entire proceeds under the Note for such qualifying expenses.
Subject to any forgiveness under the PPP, the Note matures two years following the date of issuance of the Note and includes a period for the first six months during which time required payments of interest and principal are deferred. Beginning on the seventh month following the date of the Note, the Borrowers are required to make 18 monthly payments of principal and interest. The Note may be prepaid at any time prior to maturity. The Note provides for customary events of default, including, among others, those relating to breaches of obligations under the Note, including a failure to make payments, any bankruptcy or similar proceedings involving the Borrowers, and certain material effects on the Borrowers’ ability to repay the Note. The Borrowers did not provide any collateral or guarantees for the Note.
The foregoing description of the Note is qualified by reference to the complete text of the Note, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Staffing 360 Solutions, Inc. Exhibit
EX-10.1 2 staf-ex101_6.htm EX-10.1 staf-ex101_6.htm Exhibit 10.1 DocuSign Envelope ID: C7889BF3-923A-4FA4-8C0E-AD8DC7E0A649 Paycheck Protection Program Lender Application Form – Paycheck Protection Program Loan Guaranty SBA Form 2484 (Revised 04/20) 1 OMB Control No.: 3245-0407 Expiration Date: 09/30/2020 The purpose of this form is to collect identifying information about the Lender,…
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About STAFFING 360 SOLUTIONS, INC. (NASDAQ:STAF)
Staffing 360 Solutions, Inc. operates in the staffing sector. The Company is engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the United States and the United Kingdom. Its targeted consolidation model is focused on the finance and accounting, administrative, engineering and information technology (IT) staffing space.
