Next Biometrics granted $1 million COVID-19 relief loan from U.S. government
The U.S. government has granted Next Biometrics ASA‘s Washington-based subsidiary Next Biometrics Inc. a loan of approximately $1 million under the Paycheck Protection Program created by the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020, the company announced.
Next Biometrics will use the funding for payroll and to cover U.S. operation expenses. The company may be eligible for partial loan forgiveness. Otherwise, the loan is for two years and has a 1 percent interest rate.
“The Covid-19 lockdown in Seattle, WA has led to that Next US R&D employees must carry their duties from home offices. As earlier communicated the company has already taken steps securing that all customers are being served during this period,” said Peter Heuman, Next Biometrics CEO, in a prepared statement. “At the same time, we are pleased that Next Inc has been approved for the small business loan program sponsored by the US government. The loan and the recently announced cost reductions in our global operations will contribute in extending our financial runway.”
Last month, Next Biometrics announced it would further cut costs and headcount to mitigate COVID-19’s impact on fingerprint business. The plan to cut costs, as the fingerprint market reacts to the outbreak, involves outsourcing some operations to countries with lower costs, further reducing headcount, streamlining and lowering vendor costs, simplifying the company’s legal structure, which will reduce administration costs, and simplify its product offerings.