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Business News – Most Oil Companies Aren’t Returning Coronavirus Emergency Loans

Business News – Most Oil Companies Aren’t Returning Coronavirus Emergency Loans

Business News –

Just 3 out of twelve public oil and also gas companies in the United States have thus far claimed they had actually returned loans gotten under the program to aid local business maintain workers throughout the COVID-19 pandemic, Reuters reported on Tuesday, mentioning safeties filings.

The Paycheck Protection Program (PPP) of the U.S. Small Business Administration was planned for local business that do not have accessibility to various other resources of financing, such as bond or equity markets.

The PPP, a funding developed to give a straight reward for local business to maintain their employees on the pay-roll, will certainly be forgiven by the SBA if all workers are kept the pay-roll for 8 weeks and also the cash is utilized for pay-roll, lease, home mortgage rate of interest, or energies, the Administration claims.

But in the preliminary complication concerning assistance on that is and also that is not qualified to obtain loans under the program, lots of noted companies have actually requested and also obtained such loans, consisting of a loads smaller sized yet noted U.S. oil and also gas companies.

Three of those, PDC Energy, Natural Gas Services Group, and also Dawson Geophysical have actually returned countless U.S. bucks in loans they had actually gotten under the PPP financing.

Denver-based PDC Energy claimed in an SEC declaring in very early May that it had actually requested and also obtained a US$10 million financing in April via the PPP.

“Pursuant to lately launched standards relative to the TREATMENT Act and also the SBAPPP loans, we returned the $10 countless funds,” the firm claimed.

Natural Gas Services Group’s president Stephen Taylor claimed on the revenues phone call this month that the company had actually requested and also obtained a US$4.6 million financing under PPP. Although the company still considers it qualified under the program, NGS determined to return the financing. But after returning that financing, NGS was compelled to minimize its labor force by 20 percent, or approximately 50 of employee, Taylor claimed, keeping in mind that, “In impact, public companies in our workers were victimized what ended up being a politically driven procedure.”

Dawson Geophysical of Midland, Texas, claimed recently it had actually returned the US$6.37-million financing it had actually gotten under PPP “out of a wealth of care and also taking into account the brand-new assistance.”

Other companies have actually additionally gotten loans under PPP, yet have actually not shown yet whether they plan to return those loans, according to Reuters.

By Tsvetana Paraskova for Oilprice.com

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