Device company Aurora Spine said Feb. 24 that it received loan proceeds of $350,140 under the second round of the Paycheck Protection Program, as part of the Coronavirus Aid, Relief and Economic Security Act.
Four things to know:
1. The Carlsbad, Calif.-based company said it plans to commercialize minimally invasive and regenerative implants for the spine and pain management markets.
2. The PPP provides loans to small businesses for up to 2.5 times their average monthly payroll costs.
3. The amount borrowed will be forgiven provided that Aurora Spine uses the proceeds for payroll costs, rent, mortgage interest, utility costs and worker protection costs related to COVID-19.
4. Interest payments on unforgiven portions of the PPP loan will be deferred for 10 months and accrue interest at a fixed annual rate of 1 percent. The remaining PPP loan balance will carry a five-year maturity date, with no prepayment penalty.