On April 20, 2020, Cumberland Pharmaceuticals, Inc. (the "Company"), reported that received the funding of a loan ("Loan") from Pinnacle Bank in the aggregate amount of $2,187,140 pursuant to the Paycheck Protection Program (the "PPP") under the Federal Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), which was enacted March 27, 2020 (Filing, 8-K, Cumberland Pharmaceuticals, APR 20, 2020, View Source [SID1234556459]). The PPP is administered by the U.S. Small Business Administration.

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The Loan, which was in the form of a Note dated April 14, 2020, maturing on April 14, 2022 and bearing interest at a rate of 1.0% per year, payable monthly commencing during November 2020. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Funds from the Loan are to be used to maintain payroll, continue group health care benefits and pay for rent and utilities. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company intends to use the majority of the Loan amount for such qualifying expenses.