Veritone and its subsidiary, Veritone One announced that the companies have received a total of $6.5 million of loans from Sunwest Bank under the Paycheck Protection Program (PPP) contained within the new Coronavirus Aid, Relief, and Economic Security (CARES) Act, the company announced on Friday.
“Small businesses are vital to the nation’s economy, and we are grateful the CARES Act established a safety net to help companies like Veritone weather the significant disruption and uncertainty associated with the COVID-19 pandemic,” Chad Steelberg, chairman and CEO of Veritone, said.
With the loan, Veritone will be able to continue operations without salary reductions, layoffs or furloughs amidst the COVID-19 pandemic and challenging economic environment. The PPP loan has a term of two years, is unsecured, and is guaranteed by the U.S. Small Business Administration.
The loan carries a fixed interest rate of one percent per annum, with the first six months of interest deferred. Under the CARES Act, Veritone will be eligible to apply for forgiveness of all loan proceeds used to pay payroll costs, rent, utilities and other qualifying expenses during the eight-week period following receipt of the loan.
The eligibility will be contingent upon the company’s maintenance of its employment and compensation within certain parameters during such a period. The forgiven amount will not be included in the company’s taxable income.
“We shifted to working from home in mid-March, and our whole team has rallied together to serve our customers, continue our software development and pursue new business opportunities while reducing our operating expenses. As a result of these efforts, we do not anticipate needing additional funds beyond this PPP loan in the near term based on our business outlook,” Veritone president Ryan Steelberg added.
Veritone (Nasdaq: VERI) is a leading provider of artificial intelligence (AI) technology and solutions. The Company’s proprietary operating system, aiWARE™ powers a diverse set of AI applications and intelligent process automation solutions that are transforming both commercial and government organizations. aiWARE orchestrates an expanding ecosystem of machine learning models to transform audio, video, and other data sources into actionable intelligence. The Company’s AI developer tools enable its customers and partners to easily develop and deploy custom applications that leverage the power of AI to dramatically improve operational efficiency and unlock untapped opportunities. Veritone is headquartered in Costa Mesa, California, and has offices in Denver, London, New York, San Diego, and Seattle.