ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
On June 23, 2020, Stein Mart, Inc. ("Stein Mart," or the "Company") entered into
an agreement to receive a U.S. Small Business Administration Loan ("SBA Loan")
from Harvest Small Business Finance, LLC related to the COVID-19 pandemic in the
amount of $10.0 million. The SBA Loan has a fixed interest rate of 1% and a
maturity date five years from the date on which the Company applies for loan
forgiveness under section 1106 of the CARES Act. Pursuant to the terms of the
SBA Loan, the Company may apply for forgiveness of the amount due on the SBA
Loan in an amount equal to the sum of the following costs incurred by the
Company during the period commencing on the date of first disbursement of the
Loan and ending upon the earlier of (i) 24 weeks after the date of the first
disbursement of the Loan and (ii) December 31, 2020 (such period, the "Covered
Period"): payroll costs, payment on a covered rent obligation, and any covered
utility payment. The amount of SBA Loan forgiveness shall be calculated in
accordance with the requirements of the Paycheck Protection Program, including
the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act), although no more than 40% of the amount forgiven can
be attributable to non-payroll costs.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
Exhibit Number Description
10.1 SBA Loan by and Between Stein Mart, Inc. and Harvest Small Business
Finance, LLC, dated June 23, 2020
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