TransAct Technologies Receives Loan under Paycheck Protection Program

TransAct Technologies Incorporated (Nasdaq: TACT) (“TransAct” or the “Company”), a global leader in software-driven technology and printing solutions for high-growth markets, today announced that the Company received a loan in the aggregate amount of $2,172,800 (the “Loan”) pursuant to Paycheck Protection Program (the “PPP”) administered by the Small Business Administration (the “SBA”) and established under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020. This funding is expected to help the Company maintain its operations and meet its payroll obligations in this time of unprecedented uncertainty related to the impact that the novel coronavirus (COVID-19) pandemic is having on the food service and casino industries.

The Loan, which is evidenced by a Note dated May 1, 2020 (the “Loan Date”) issued by the Company, matures on May 1, 2022 and bears interest at a fixed rate of 1.0% per annum, accruing from the Loan Date and payable monthly commencing on November 1, 2020.

“During these unprecedented times, we are taking proactive steps to plan for the future of TransAct’s customers, employees, and investors. The SBA PPP funding provides financial flexibility and enhances our liquidity position so that we can retain our employees, which allows us to keep important projects going and support ongoing operations at a time when the world is experiencing great volatility,” said Bart C. Shuldman, Chairman and CEO of TransAct. “We expect to use the proceeds of the loan for purposes that will permit most of the loan to be forgiven, and we look forward to bringing back our furloughed workers.”

Under the terms of the PPP, the Loan may be forgiven to the extent that funds from the Loan are used for payroll costs and costs to continue group health care benefits, as well as for interest on mortgage obligations incurred before February 15, 2020, rent under lease agreements in effect before February 15, 2020, utilities for which service began before February 15, 2020, and interest on debt obligations incurred before February 15, 2020 (collectively, “qualifying expenses”), subject to conditions and limitations provided in the CARES Act. At least 75% of such forgiven amounts must be used for eligible payroll costs. The Company expects to maximize the use of Loan proceeds for qualifying expenses and intends to apply for forgiveness of the Loan in accordance with the terms of the CARES Act. Whether forgiveness will be granted and in what amount is subject to an application to, and approval by, the SBA and may also be subject to further requirements in any regulations and guidelines the U.S. Department of the Treasury or the SBA may adopt.