Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

Loan received pursuant to the Payroll Protection Program



In April 2020, the Company was approved for, and received a loan with proceeds of $1.01 million under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses, with the amount of the loan being determined by application of a formula defined in the CARES Act that is based, in large part, on payroll expenses incurred by the Company. Amounts received pursuant to the PPP are intended to fund qualifying expenses, as defined in the CARES Act, which include, without limitation, employee payroll, health care benefits, rent and utilities, mortgage payments and interest on other debt obligations incurred prior to February 15, 2020.

Under the terms of the PPP, certain amounts received as a loan may be forgiven if they are used for qualifying expenses.