Workhorse Group, which manufactures electric last-mile delivery vehicles, says it recently secured $1.4 million through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The funds, administered by the US Small Business Administration, were secured through a paycheck protection program (PPP) with PNC Bank. Under the terms of its PNC note, and in accordance with the requirements of the CARES Act, the company said it will use the proceeds primarily to offset payroll expenses.
During the first six months of the note, neither principal nor interest shall be due and payable during this deferral period, and a large portion of the loan could be forgiven should the company meet certain qualifications under the program.
“We are appreciative of the federal government’s recognition and support of small business needs during an unprecedented time in our nation’s history,” said Steve Schrader, Workhorse’s chief financial officer. “Because of the proactivity of our leadership team in responding to the requirements of the SBA PPP application process, we were able to access this relief swiftly and without issue. These funds will go a long way in allowing us to continue to meet our payroll needs and, as an essential business supporting the package delivery industry, keeping all our employees safe and working is critical through this challenging period.
“More generally, over the past year-plus period, we’ve seen a growing interest in our ground-based delivery vehicles with their integrated Horsefly drone capabilities as America and the global economy has become increasingly reliant on online ordering and at-home delivery. The various industry shutdowns over the past few weeks have made this demand greater and the need more immediate. We are committed to supporting our customers and partners as they perform these vital delivery and support services during this period.”