SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2020

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 11 – SUBSEQUENT EVENT

On April 20, 2020, the Company received a $2.9 million PPP loan, as provided pursuant to the CARES Act, signed into law on March 27, 2020.  PPP loans, which are unsecured and guaranteed by the SBA, were designed to create economic stimulus by providing additional operating capital to small businesses, such as P&F, in the United States for permitted uses during an eight-week period following receipt of funds.

The loan, which was obtained from BNB Bank under a promissory note dated April 17, 2020, provides for a fixed rate of interest of one percent per year with a maturity date two years from the date the funds were received. No payments of principal or interest is due during the initial six-month period.  Beginning in the seventh month, the Company is required to make monthly payments of principal and interest until maturity, for any portion of the loan that is not forgiven. Up to 100% of the loan may be forgiven based on the amount of funds used during the eight-week period after receiving the funds towards payroll, rent, and certain other permitted operating expenses calculated pursuant to the CARES Act, although no assurance can be provided that P&F will obtain forgiveness of the loan in whole or in part.