Marrone Bio Innovations secures $1.7M coronavirus small business relief loan

Marrone Bio Innovations secures $1.7M coronavirus small business relief loan

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Marrone Bio Innovations Inc (NASDAQ:MBII), a producer of biological products for crop protection and plant health, has received a $1.7 million small business loan under the Paycheck Protection Program (PPP) contained within the Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP allows US businesses and nonprofits with fewer than 500 employees to secure loans of up to $10 million, incentivizing them not to reduce their workforces during the coronavirus (COVID-19) pandemic. “Our grower customers are working to meet increasing demand to feed the nation and work as essential businesses during the COVID-19 pandemic,” Maronne's CFO Jim Boyd said in a statement. “Our products are critical to their success, and we want to ensure our products and our employees are in place to service the needs of farmers across the United States.” READ: Marrone Bio's plant health product Pacesetter now available to US corn, soybean and wheat growers The loan has a term of two years and is guaranteed by the Small Business Administration. It bears interest at a fixed rate of 1% per year with the first six months of interest deferred. Some or all of the loan may be forgiven if at least 75% of the proceeds are used by payroll costs and the company maintains its employment and compensation over the following eight weeks. “The proceeds from the PPP loan will provide us with additional employee job security as we work to supply growers nationwide during the important spring growing season,” Boyd said. “Today, more than ever, it is paramount to continue our important role in the food supply chain so fresh produce can reach the tables of consumers.”  Boyd said the company is conserving cash through expense control and restricting non-essential travel while serving customers and working to ensure the safety of its employees, customers and partners. The Davis, California-based company holds more than 400 issued and pending patents and has brought six EPA-registered biological product lines and one biostimulant to market. Its products include bacteria strains and plant extracts that fight pests, control plant diseases and reduce stress from sun and water. Contact Andrew Kessel at [email protected]  Follow him on Twitter @andrew_kessel

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