Cinedigm announced that it has received forgiveness of approximately $2.2 million of loan proceeds and accrued interest previously carried under the federal Paycheck Protection Program established by the government to help small businesses affected by shutdowns during the pandemic.
On July 7, Cinedigm received notice from East West Bank PPP, the lender of its loan, that the U.S. Small Business Administration approved the forgiveness in its entirety, and that East West Bank has applied the funds and paid off the principal and interest of the loan in full.
“We are very pleased to receive the notice of forgiveness,” Gary Loffredo, chief operating officer and general counsel of Cinedigm, said in a statement.
Loffredo said not having to pay back the loan (including interest) helped Cinedigm move into a “very solid position” now financially with virtually no debt and a fast-growing streaming business.
“We remain grateful for the financial support that the CARES Act provided in response to the COVID-19 pandemic,” he said.