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Note F - Long-term Debt | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Long-term Debt [Text Block] | Note F — Long-Term Debt As of December 31, 2020 and 2019 , long-term debt was as follows:
In thousands |  | December 31, 2020 |  |  | December 31, 2019 |
Revolving credit facility |  | $ | 17,100 |  |  | $ | 18,700 |
Paycheck Protection Program Term Note |  |  | 10,000 |  |  |  | — |
Total debt |  |  | 27,100 |  |  |  | 18,700 |
Less: current portion of long-term debt |  |  | (4,926 | ) |  |  | — |
Long-term debt |  | $ | 22,174 |  |  | $ | 18,700 |
Credit Facilities As of December 31, 2020 and 2019 , we had $17.1 million and $18.7 million of borrowing outstanding under the Texas Capital Facility (as defined below ), respectively. As of December 31, 2020 , we had the ability to borrow an additional $0.1 million under the Texas Capital Facility. On April 17, 2017, we entered into a secured credit facility with Texas Capital Bank, N.A. (“Texas Capital Bank”), that provides a $20 million revolving credit facility (the “Texas Capital Credit Facility”) and for letters of credit issued by Texas Capital Bank up to $5 million. The Texas Capital Credit Facility is secured by substantially all of the Company's and its material domestic subsidiaries' assets. The Texas Capital Credit Facility is guaranteed by HHS Guaranty, LLC, an entity formed to provide credit support for Harte Hanks by certain members of the Shelton family (descendants of one of our founders). Under the Texas Capital Credit Facility, we can elect to accrue interest on outstanding principal balances at either LIBOR plus 1.95% or prime plus 0.75%. Unused commitment balances accrue interest at 0.50%. We are required to pay a quarterly fee as consideration for the guarantee of 0.5% of the value of the collateral actually pledged to secure the facility, which for 2020 amounted to $0.5 million. The Texas Capital Credit Facility is subject to customary covenants requiring insurance, legal compliance, payment of taxes, prohibition of second liens, and secondary indebtedness, as well as the filing of quarterly and annual financial statements. The Company has been in compliance of all the requirements. The Texas Capital Credit Facility originally had an expiration date of April 17, 2019, at which point all outstanding amounts would have been due. On January 9, 2018, we entered into an amendment to the Texas Capital Credit Facility that increased the borrowing capacity to $22.0 million and extended the maturity by one year to April 17, 2020. On May 7, 2019, we entered into a second amendment to the Texas Capital Credit Facility which further extended the maturity of the facility by one year to April 17, 2021. On May 11, 2020, we entered into a third amendment to the Texas Capital Credit Facility which further extended the maturity of the facility by one year to April 17, 2022 and decreased the borrowing capacity to $19.0 million. The Texas Capital Credit Facility remains secured by substantially all of our assets and continues to be guaranteed by HHS Guaranty, LLC. At December 31, 2020 , we had letters of credit outstanding in the amount of $1.8 million. No amounts were drawn against these letters of credit at December 31, 2020 . These letters of credit exist to support insurance programs relating to workers' compensation, automobile, and general liability. Cash payments for interest were $0.7 million and $0.9 million for the years ended December 31, 2020 and 2019 , respectively. Paycheck Protection Program Term Note On April 14, 2020, the Company entered into a promissory note with Texas Capital Bank, for an unsecured loan with a principal amount of $10.0 million made to the Company pursuant to the Paycheck Protection Program (“PPP Term Note”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Term Note is guaranteed by the United States Small Business Administration. The PPP Term Note bears interest at a fixed annual rate of 1.00%, with interest deferred for the first eighteen months. Beginning in September 2021, the Company is required to make eight equal monthly payments of principal and interest with the final payment due in April 2022, unless the loan is forgiven as described below. The PPP Term Note may be accelerated upon the occurrence of an event of default. The proceeds may be used to maintain payroll or make certain covered interest payments, lease payments and utility payments. Under the terms of the CARES Act, the Company can be granted forgiveness for all or a portion of the loan granted under the Paycheck Protection Program, with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for permitted expenses. At this time, the Company anticipates forgiveness of the entire amount of the PPP Term Note; however, we are not in a position to estimate the timing of the completion of the forgiveness process. We applied for forgiveness of the PPP Term Note in the first quarter of 2021. We have elected to classify the principal balance of the PPP Term Note within both Short-term and Long-term debt, net, on the consolidated balance sheet as of December 31, 2020. Under the existing terms of the PPP Term Note, if no forgiveness is granted, approximately $4.9 million of the principal amount of the PPP Term Note would be due within twelve months from December 31, 20 20.

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