Item 1.02. Termination of a Material Definitive Agreement.
As previously reported in the Current Report on Form 8-K filed with the
Securities and Exchange Commission on May 6, 2020 (the "May 2020 Form 8-K"), by
Vertex Energy, Inc. ("we", "us" or the "Company"), on May 4, 2020, the Company
applied for a loan (the "PPP Loan") from Texas Citizens Bank, NA (the "Lender")
in the principal amount of $4.222 million, pursuant to the Paycheck Protection
Program (the "PPP"), which was enacted on March 27, 2020. On May 5, 2020, the
Company received the PPP Loan funds. 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").
Under the terms of the CARES Act, PPP loan recipients can apply for, and the SBA
can grant forgiveness of, all or a portion of loans made under the PPP if the
recipients use the PPP loan proceeds for eligible purposes, including payroll
costs, mortgage interest, rent or utility costs and meet other requirements
regarding, among other things, the maintenance of employment and compensation
levels. The Company used the PPP Loan proceeds for qualifying expenses and
applied for forgiveness of the PPP Loan in accordance with the terms of the
CARES Act.
On June 22, 2021, the Company received a notification from the Lender that the
SBA approved the Company's PPP Loan forgiveness application for the entire PPP
Loan balance of $4.222 million and accrued interest and that the remaining PPP
Loan balance is zero. The forgiveness of the PPP Loan will be recognized during
the Company's second quarter ending June 30, 2021.
The disclosure in Item 1.01of the May 2020 Form 8-K is incorporated into this
Item 1.02 by reference.
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