Orbit International Corp. Receives $1.6 Million Loan Under Paycheck Protection Program Provision of CARES Act

Company to Suspend Quarterly Cash Dividend Payment

HAUPPAUGE, N.Y., May 05, 2020 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT) (“Orbit”), an electronics manufacturer and software solution provider, today announced that it closed on a $1,606,000 loan (“Loan”) from Peoples United Bank under the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security Act (“the CARES Act”). The Loan is evidenced by a promissory note (“Note”), bears interest at 1.00% per annum with the first six months of interest deferred from the date of the Note, has an initial term of two years from the date of the Note, may be prepaid at any time and is unsecured and guaranteed by the Small Business Administration. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of such loans based on the use of such loan proceeds for payment of payroll costs, mortgage interest, rent and utilities. 

The Company also announced that its Board of Directors has decided to suspend the Company’s $0.01 quarterly cash dividend due to the economic uncertainty of the pandemic. Previously, on April 21, 2020, the Company announced that its Board of Directors had decided to suspend its share repurchase program.

Mitchell Binder, President and CEO of Orbit International Corp., commented, “Since late March, when the Governor of New York State issued the PAUSE executive order, we have kept our manufacturing facility operational while safeguarding the health and safety of our employees. We instituted a dual six-hour shift for our manufacturing employees and directed most of our salaried employees to work from home. As a result, productivity has been adversely affected throughout our organization and we continue to deal with issues from our supply chain which have impacted customer deliveries. Furthermore, both bookings and revenue have been impacted, particularly from our Power Group’s commercial division whose customer base has been especially hurt by the pandemic. In addition, Orbit’s subsidiary, Q-Vio Corp., has found that most of its commercial and industrial opportunities have been delayed indefinitely. However, despite all the inefficiencies and sales uncertainty this pandemic has created, this loan will allow us to maintain full employment.”