Terre Haute Coal Company Receives $10M Loan
A coal company headquartered in Terre Haute says it is receiving funding through the Paycheck Protection Program, which Congress now hopes to fund again through a new COVID-19 relief package. In a company news release, Hallador Energy reported it received a $10 million dollar loan approval.
Hallador says it plans to utilize PPP funds to pay two months of payroll and other covered expenses.
The program is intended to support small businesses, which are often those with less than 500 employees. However, the definition of ‘small business’ varies by industry. Some coal-mining firms with up to 1,500 employees could qualify for the PPP loan.
A recent filing with the government shows Hallador had 768 employees, after the closure of the Sunrise Coal Mine in Carlisle.
In the company release, Hallador said, “Under the terms of the CARES Act, the Company expects at least 80% of the loan to be forgiven by maintaining current staffing levels through June 30, 2020.”
The initial $349 billion in funding for the PPP through the Small Business Administration ran out last week, not long after being established. President Donald Trump tweeted support for the new relief package on Tuesday. The plan includes more than $300 billion more funding for the PPP. The Senate passed it Tuesday evening, and a House vote is expected later this week.
Hallador’s release said it expects lower sales of 6.5 million tons in 2020 versus prior guidance of 6.7 million tons due to the impact of COVID-19. Hallador also anticipates shipments being weighted towards the second half of the year.
The release also included other steps the company was taking to improve liquidity. Those include; amending its credit agreement to increase its allowable leverage ratios, providing approximately $50 million in liquidity, and suspending its quarterly dividend indefinitely.