Malvern-based Neuronetics has decided to immediately repay the $6.4 million Paycheck Protection Program loan it received through Silicon Valley Bank due to questions concerning the eligibility of public companies, writes John George for the Philadelphia Business Journal.

“When the company applied for the loan, we had a good faith belief that our receipt of the funds was necessary and that we were an eligible borrower under the program,” said the medical device company.

During a conference call with analysts earlier this week, CFO Steve Furlong said the company planned to use the funds to protect jobs, cover payroll, and additional eligible expenses through June 30.

“The PPP loan would have benefitted our employees and partially mitigated the significant disruption that COVID-19 has had on our business,” he said.

Before the COVID-19 crisis, the company employed 213 employees, with 152 in sales and marketing. During the call, Furlong said that 96 workers have been permanently laid off and that the company will move forward with 117 employees, including 74 in sales and marketing.

“It was a difficult decision to reduce staff, but the company is in a better position to weather a prolonged impact from the Covid-19 pandemic,” said Furlong.

Read more about Neuronetics in the Philadelphia Business Journal here.

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