The Joint Corp., a Scottsdale-based operator and franchisor of chiropractic clinics nationwide, said Wednesday it received a $2.7 million loan through JPMorgan Chase Bank NA under the U.S. Small Business Administration’s Payroll Protection Program set up to help companies handle the economic fallout of the coronavirus pandemic.
The company already had drawn down $2 million in mid-March on a newly established line of credit agreement with Chase in what it said in a regulatory filing was "a precautionary measure in order to further strengthen its cash position and provide financial flexibility in light of the current uncertainty in the global markets resulting from the COVID-19 outbreak."
Joint Corp. entered into its credit agreement with Chase Bank in February, when the $7.5 million line of credit was established.
PPP loan proceeds are primarily to be used for payroll costs and to retain workers, and, if used for payroll and certain other permitted expenses, the principal and unpaid interest may be forgiven.
