engage:BDR Ltd (ASX:EN1) has had an application for US Small Business Administration (SBA) stimulus funding approved with the first disbursement being US$435,000 (A$675,000).
The application, under the US CARES Act stimulus program's PPP (Pay-check Protection Program), is for funding relief for the payroll of US-based employees.
Disbursement is expected within 48 hours and EN1 management expects that ‘stay at place’ orders for most of the US will be extended past May 15, which is likely to result in increased PPP funding within the coming weeks.
Other relief funding
The company has also applied for the US SBA disaster relief funding and expects feedback on this application within the next week.
Additionally, EN1 is in the late stages of the application process for an A$8 million term loan (3-4% APR) with a top-tier Australian bank and expects feedback and application submission within the next week.
Management has filed a business interruption claim with the company’s business income insurance policy.
engage:BDR is in the process of assessing impact and is working with the insurer to quantify the amount of the claim.
Strongest first quarter and March to date
The company continued to grow revenue with the March quarter total of A$5.3 million being the company’s strongest since ASX listing and 247% greater than the corresponding period of 2019.
The month of March was also EN1’s strongest to date with revenue growing 18% on the previous month to A$2.02 million, which was 211% higher than March 2019.
As evidenced by EN1’s previous results, the advertising industry traditionally expects 65-70% of its revenues in the second half of the year.
In 2019 the July to December period delivered 66% of the company’s total annual revenue.