Artificial intelligence software maker Veritone Inc. in Costa Mesa got $6.5 million from Sunwest Bank under the $350 billion Paycheck Protection Program for small businesses hit by the coronavirus pandemic.
Separate loans will go to Veritone (Nasdaq: VERI) and its subsidiary Veritone One Inc. The loans are for two years, unsecured, at 1% interest, with interest deferred for six months. Loans are guaranteed by the U.S. SBA.
Along with Veritone’s cost-cutting, the funds “will help us to continue operations without salary reductions, layoffs or furloughs,” Chief Executive Chad Steelberg said in a statement.
Loans may be forgivable in part for costs related to the coronavirus for borrowers who don’t layoff staff.
Veritone shares traded down at midday about 1% to $3.69 apiece for a market cap of $100 million.
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