Davis, California, USA
April 17, 2020
Marrone Bio Innovations Inc. (NASDAQ: MBII) (the “Company” or “Marrone Bio”), an international leader in sustainable bioprotection and plant health solutions, has secured a $1.7 million loan under the Paycheck Protection Program (PPP) (the “Loan”) contained within the Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law on March 27, 2020.
As a U.S. small business, Marrone Bio qualified for the PPP, which allows businesses and nonprofits with fewer than 500 employees to obtain loans of up to $10 million to incent companies to maintain their workers as they manage the business disruptions caused by the COVID-19 pandemic.
“Our grower customers are working to meet increasing demand to feed the nation and work as essential businesses during the COVID-19 pandemic. Our products are critical to their success, and we want to ensure our products and our employees are in place to service the needs of farmers across the United States,” said Jim Boyd, President and Chief Financial Officer of Marrone Bio. “The proceeds from the PPP loan will provide us with additional employee job security as we work to supply growers nationwide during the important spring growing season. Today, more than ever, it is paramount to continue our important role in the food supply chain so fresh produce can reach the tables of consumers.” Boyd also noted that the Company is conserving cash through prudent expense control and restricting non-essential travel while serving customers and working to ensure the safety of its employees, customers and partners.
The Loan, evidenced by a promissory note from FiveStar Bank as lender, has a term of two years, is unsecured, and is guaranteed by the Small Business Administration (SBA). The loan bears interest at a fixed rate of one percent per annum with the first six months of interest and principal deferred. Some or all of the Loan may be forgiven if at least 75 percent of the Loan proceeds are used by Marrone Bio to cover payroll costs, including benefits and if the Company maintains its employment and compensation within certain parameters during the eight-week period following the loan origination date and complies with other relevant conditions. Marrone Bio expects to meet the requirements for full Loan forgiveness. Any forgiven amount will not be included in taxable income.
The company recently published an overview of the current state of various sectors of agricultural industry. The full story in Ag News can be read here.
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