DMC Global (BOOM) Repays Paycheck Protection Program Loan

DMC Global Inc. (Nasdaq: BOOM) recently applied for a loan under the U.S. Government’s Paycheck Protection Program (PPP). The application was vetted by the Small Business Administration (SBA), and on April 14, 2020, a loan of $6.7 million was approved.

DMC borrowed this money, as the PPP legislation intended, to provide its 306 U.S. employees with payroll and benefits protection as the Company’s primary energy market enters a sharp downturn and the global economy rapidly slows due to COVID-19, significantly reducing DMC’s revenues. DMC believes that at the time it borrowed the money, it fully complied with the language of the PPP legislation. While the PPP program allows for loans of up to $10 million for all companies with as many as 500 employees, subsequent guidance from the SBA made after DMC had received the proceeds of the loan states that public companies may not be eligible for the program. In view of these new guidelines and to avoid any further disputes at a time when the business environment is the most difficult it has seen, the Company has repaid the loan.

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