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Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 7 – Subsequent Events

COVID-19 Pandemic

In March 2020, the World Health Organization declared COVID-19 a pandemic and recommended containment and mitigation measures worldwide. On March 13, 2020, President Trump announced a National Emergency relating to the disease. In response to the COVID-19 pandemic, state governments nationwide, including the states where BBSI and our clients operate, have taken preventative actions such as shelter-in-place orders, restrictions on travel, and temporary closures of businesses deemed to be non-essential.

 

The full impact of the COVID-19 pandemic on our full year financial results will depend on future developments, such as the ultimate duration and scope of the outbreak, its impact on our clients, the rate at which economic conditions, operations, and demand for our services return to pre-COVID-19 levels, and the potential for recession in our key markets due to the effects of the pandemic. Accordingly, the ultimate impact on the Company cannot be determined at this time. Nevertheless, despite the uncertainty of the COVID-19 situation, we expect our full year 2020 results to be adversely affected.

 

Revolving Credit Facility

In May 2020, the Company reached an agreement, in principal, with Wells Fargo Bank, National Association, to increase the revolving credit line from $33.0 million to $50.0 million and extend the expiration date of the credit facility to July 2021.