woo hoo ! great news !!022-06-15 15:13 ET - News Release
An anonymous director reports
PPP LOAN FORGIVENESS
In 2020, Evergreen Gaming Corp., through various subsidiaries, applied for Paycheck Protection Program (PPP) loans under the CARES Act, administered by the Small Business Administration (SBA). The applications were approved and the company borrowed a total of $6,111,300 (U.S.) in PPP loans from Banner Bank, the company's primary lender. The program under which the loans were made contemplated that the loans would be forgiven if certain eligibility criteria were met. The company initially believed that all eligibility criteria for forgiveness had been met, and this belief was reflected in the company's financial statements and MD&A (management discussion and analysis) filed prior to the company's Dec. 31, 2022, year-end. In the first quarter of 2022, the company became aware that the SBA was interpreting certain eligibility criteria for PPP loan forgiveness in a manner that was potentially unfavourable to the company. As a result, in its Dec. 31, 2021, and March 31, 2022, financial statements and MD&A, the company recharacterized the PPP loans as a liability, pending notification from the SBA as to whether its application for forgiveness had been accepted. In May, 2022, Banner provided to the company letters from the SBA stating that all of the company's PPP loans had been forgiven. The SBA has an audit power, but barring any further developments, the company's advice is that these letters are determinative on the issue. Accordingly, the loan forgiveness will be reflected in the company's second quarter financial statements and MD&A.