Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of the Registrant.

The disclosure in Item 8.01 and Exhibit 10.1 of this report are incorporated herein by reference.




Item 8.01 Other Events.

Natural Gas Services Group, Inc. (the "Company") entered into a promissory note (the "Loan") evidencing an unsecured loan in the amount of $4.6 million made to the Company under the Paycheck Protection Program (the "PPP"). The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") and is administered by the U.S. Small Business Administration ("SBA"). The Loan to the Company is being made through JPMorgan Chase Bank, N.A. (the "Lender"). The Company's Loan application was approved by the SBA and the Loan was funded by the Lender on April 10, 2020.

The Loan matures on April 8, 2022 and bears interest at a rate of 0.98% per annum. Commencing November 8, 2020, the Company is required to pay the lender 18 equal monthly payments of principal and interest as required to fully amortize the principal amount outstanding on the Loan as of October 8, 2020. The promissory note evidencing the Loan contains customary events of default relating to, among other things, payment defaults, making materially false and misleading representations to the SBA or Lender, or breaching the terms of the Loan documents. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company.

All or a portion of the Loan may be forgiven by the SBA upon application by the Company beginning 60 days but not later than 120 days after loan approval and upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during the eight week period beginning on the date of loan approval. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000, prorated annually. Not more than 25% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%. In the event the Loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal. No assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part.

The foregoing descriptions of the Loan do not purport to be complete and are qualified in their entirety by reference to the full text of the promissory note attached to this Form 8-K as Exhibit 10.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits



The Exhibit listed below is furnished as an Exhibit to this Current Report on
Form 8-K.
Exhibit No.       Description
                  Note dated April 8, 2020, between Natural Gas Services Group, Inc., and
  10.1            JPMorgan Chase Bank, N.A.

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