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Capstone Gets PPP Loan

Capstone Turbine Corp. received a $2.6 million federal loan under the Paycheck Protection Program to be used for payroll costs, rent and utilities. The Van Nuys microturbine manufacturer received the loan through its banking partner, Western Alliance Bank, in Phoenix. Chief Executive Darren Jamison said the company was appreciative of the federal government for making the money available and to Western Alliance for its work in getting the funding during this unprecedented time. “During these times of uncertainty that the COVID-19 pandemic has created for nearly every business, having the additional liquidity provided by the (program) enhances our ability to continue manufacturing products and providing aftermarket services for our customers, which includes our global distribution network which is largely comprised of 62 small businesses across 73 countries,” Jamison said in a statement. Capstone is to begin making payments on the two-year term loan in November. The loan, however, may be forgiven partially or fully provided that at least 75 percent of the proceeds is used for payroll costs. “Forgiveness is based on (Capstone) maintaining, or quickly rehiring employees and maintaining applicable salary levels,” the company said. “Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.” Shares in Capstone (CPST) closed up 2 cents, or just about 1 percent, to $2.07 on the Nasdaq on Wednesday, a day when that stock exchange increased by 3.6 percent.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.
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