Blonder Tongue Announces Receipt of Loan Proceeds Under Paycheck Protection Program

(NYSE American: BDR) announced today that it has received loan proceeds of $1,768,762 ("PPP Loan") 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 for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the eight-week period. The PPL Loan is evidenced by a promissory note, dated as of April 5, 2020 (the "Note"), between the Company, as Borrower, and JPMorgan Chase Bank, N.A., as Lender (the "Lender"). The interest rate on the Note is 0.98% per annum. Payments of principal and interest are deferred for six months from the date of the of the Note (the "Deferral Period"). Principal and accrued interest under the Note are forgivable after eight weeks as long the Company has used the loan proceeds for the types of eligible purposes described above. The amount of loan forgiveness will be reduced if the Company terminates employees or reduces salaries during the eight-week period. The Company intends to use the proceeds for purposes consistent with the PPP, and while it believes that its use of the PPP Loan proceeds will meet the conditions for forgiveness of the PPP Loan, no assurance can be given that the Company will not take actions that could cause the Company to be ineligible for forgiveness, in whole or in part. In addition, interest payable may be forgiven only if the SBA agrees to pay such interest on the forgiven principal amount of the Note. Any unforgiven portion of the PPP Loan is payable over two years at an interest rate of 0.98% per annum, with payments deferred during the Deferral Period. The Company is permitted to prepay the Note at any time without payment of any premium.