Stein Mart, Inc., Form 8-K Current Report, June 23, 2020

Summary

A Form 8-K Current Report of Stein Mart, Inc., with a date of report of June 23, 2020, signed June 25, 2020 by /s/ James B. Brown, Executive Vice President and Chief Financial Officer. Items 1.01 and 2.03 state that on June 23, 2020, Stein Mart entered into an agreement to receive a U.S. Small Business Administration Loan ("SBA Loan") from Harvest Small Business Finance, LLC, related to the COVID-19 pandemic, in the amount of $10.0 million. The SBA Loan has a fixed interest rate of 1%, matures five years from the date the Company applies for loan forgiveness under section 1106 of the CARES Act, and allows forgiveness of no more than 40% attributable to non-payroll costs. Exhibit 10.1 is listed as the SBA Loan between Stein Mart, Inc. and Harvest Small Business Finance, LLC.

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8-K 1 smrtppploan8-k.htm 8-K html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd" Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

June 23, 2020

Date of Report (Date of earliest event reported)

STEIN MART, INC.

(Exact name of registrant as specified in its charter)

Florida | 0-20052 | 64-0466198
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number)

1200 Riverplace Blvd., Jacksonville, Florida 32207

(Address of principal executive offices, including Zip Code)

(904) 346-1500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Common Stock, $0.01 par value | SMRT | The NASDAQ Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

The information under Item 2.03 herein is incorporated herein by reference.

ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT

On June 23, 2020, Stein Mart, Inc. (“Stein Mart,” or the “Company”) entered into an agreement to receive a U.S. Small Business Administration Loan (“SBA Loan”) from Harvest Small Business Finance, LLC related to the COVID-19 pandemic in the amount of $10.0 million. The SBA Loan has a fixed interest rate of 1% and a maturity date five years from the date on which the Company applies for loan forgiveness under section 1106 of the CARES Act. Pursuant to the terms of the SBA Loan, the Company may apply for forgiveness of the amount due on the SBA Loan in an amount equal to the sum of the following costs incurred by the Company during the period commencing on the date of first disbursement of the Loan and ending upon the earlier of (i) 24 weeks after the date of the first disbursement of the Loan and (ii) December 31, 2020 (such period, the “Covered Period”): payroll costs, payment on a covered rent obligation, and any covered utility payment. The amount of SBA Loan forgiveness shall be calculated in accordance with the requirements of the Paycheck Protection Program, including the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), although no more than 40% of the amount forgiven can be attributable to non-payroll costs.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

Exhibit Number | Description
10.1 | SBA Loan by and Between Stein Mart, Inc. and Harvest Small Business Finance, LLC, dated June 23, 2020

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

STEIN MART, INC.
(Registrant)
Date: | June 25, 2020 | By: | /s/ James B. Brown
James B. Brown
Executive Vice President and Chief Financial Officer

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