Subsequent Event

3 Months Ended

Mar. 31, 2020

Subsequent Event.

Subsequent Event

Note 13. Subsequent Event

The Ivy Credit Agreement was amended on April 24, 2020, resulting in the credit facility being paid down from $73,000 to $69,000. The amendment also cancelled an $8,000 mandatory repayment due on April 30, 2020, raised the cap on allowable dividends to be paid by CCFI Funding II, LLC to its parent to $7,000 per month, temporarily reduced collateral coverage requirements, increased the advance rate on eligible receivables, and temporarily suspended an adjusted EBITDA test until September 30, 2020, which test will be based on new covenant levels to be determined.

In Virginia, SB 421 was signed into law by the Governor on April 22, 2020, with an effective date of January 1, 2021.  This legislation will have a substantial impact on our open-end lending in Virginia, as lenders and borrowers will no longer be free to set interest rates.  Rather the interest on open-end credit would be capped at 36%.  This may have a substantial impact on our Virginia operations.