12.

Debt

Line of Credit

Citizens Bank

The Company entered into a new three-year, $5.0 million revolving line of credit facility (RLOC) with Citizens Bank on December 29, 2016, to fund general working capital needs, including acquisitions. Working capital advances bear interest of LIBOR plus 2.25% per annum and letter of credit fees are 1.25% per annum. The Company is not required to maintain a restricted cash collateral account at Citizens Bank for outstanding letters of credit and working capital advances.

The maximum availability under the RLOC is subject to a borrowing base equal to 80% of eligible accounts receivable, and is reduced for any issued and outstanding letters of credit and working capital advances. At March 31, 2017, there were no outstanding borrowings on the RLOC and six letters of credit totaling $1.7 million. The amount available at March 31, 2017, after consideration of the borrowing base, letters of credit and working capital advances was approximately $1.8 million.

The credit facility agreement is subject to standard financial covenants and reporting requirements. At March 31, 2017, the Company was in compliance with its financial covenants.

BB&T Bank

At March 31, 2017, we had four letters of credit with BB&T totaling $1.0 million, which we expect to terminate during the second quarter of 2017. At March 31, 2017, and December 31, 2016, the cash collateral account with BB&T totaled $1.1 million and was classified as restricted cash on the consolidated balance sheets.