TransMedic (NSDQ:TMDX) announced that it had issued a promissory note to receive more than $ 2.2 million under the Paycheck Protection Program (PPP).

The unsecured loan with proceeds of $ 2,249,280 is expected to mature on April 20, 2022 and includes a fixed interest rate of 1% per annum, according to a SEC filing.

Under the PPP, under the US government’s CARES (Coronavirus Aid, Relief and Economic Security) law, 75% of the loan proceeds must be used for payroll purposes, while the remainder can also be used for payroll or for rent, mortgage interest or utilities.

All or part of the loan may be canceled if all employees of the company are retained on the payroll for eight weeks after the date of the loan and it is used according to program guidelines. Forgiveness also relies on retaining or rehiring employees promptly and maintaining salary levels by the company. It will be reduced if the full-time workforce of TransMedics decreases or if wages and salaries decrease. According to the company Annual Report, as of December 28, 2019, TransMedics had 109 employees, most of whom were full-time.

Yesterday, the developer of the organ transplant transport system based in Andover, Mass., Made a second amendment to the credit agreement with OrbiMed Royalty Opportunities. The amendment provides that TransMedics may incur unsecured debt under the PPP and in an amount not exceeding the $ 2.2 million borrowed at any time.

If this were to occur, TransMedics, within 90 days of the incurring of this debt, would request a remission for a total of at least $ 2,024,352 and obtain this remission by October 31, 2020.