Item 8.01 Other Events.
As previously reported in the Current Report on Form 8-K filed by Crimson Wine
Group, Ltd. (the "Company") on April 24, 2020, on April 20, 2020, the Company
entered into a promissory note (the "Note") evidencing an unsecured loan in the
principal amount of $3,819,521.91 (the "Loan") under the Paycheck Protection
Program (the "PPP"). The PPP was established under the Coronavirus Aid, Relief,
and Economic Security Act (the "CARES Act") and is administered by the U.S.
Small Business Administration (the "SBA"). The Loan was made through American
AgCredit, PCA (the "Lender").
Pursuant to the terms of the CARES Act and the PPP, the Company may apply to the
Lender for forgiveness for the amount due on the Loan. The amount eligible for
forgiveness is based on the amount of Loan proceeds used by the Company (during
the 24-week period after the Lender makes the first disbursement of Loan
proceeds) for the payment of certain covered costs, including payroll costs
(including benefits), interest on mortgage obligations, rent and utilities,
subject to certain limitations and reductions in accordance with the CARES Act
and the PPP.
On June 14, 2021, the Company received notification from the Lender that the SBA
approved the Company's Loan forgiveness application for the entire Loan balance
plus accrued interest. The SBA has remitted payment to the Lender in the amount
of $3,863,234.21, which accounts for all principal and interest.
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