9.	Line of Credit

The Company and its subsidiaries amended and restated its Revolving Credit Facility with Citizens Bank of Pennsylvania on

October 18, 2019.

As amended and restated, the Revolving Credit Facility provides for a

$45.0

million revolving credit facility, has

sub-limit for letters of credit, and expires on

August 8, 2023.

September 29, 2020,

the Company entered into an amendment to its Revolving Credit Facility. The amendment (i) modifies certain aspects of the financial covenants under the Loan Agreement, including the manner in which the measurement periods for certain components of the financial covenants are determined, (ii) modifies the required compliance levels for certain ratios under the Loan Agreement, and (iii) permitted the repayment of

$2.2

million of indebtedness to a

third

party incurred in connection with the previously disclosed

June 2020

repurchase of stock.

Borrowings under the Revolving Credit Facility bear interest at

one

two

alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, typically borrowed in fixed

-day increments or (ii) the agent bank's prime rate generally borrowed over shorter durations. The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is

not

drawn. Unused line fees are recorded as interest expense. The effective weighted average interest rate, including unused line fees, for the

thirty-nine

week periods ended

September 26, 2020

and

September 28, 2019

were

2.9%

and

4.6%,

respectively.

All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as a covenant that restricts on the Company's ability to borrow in order to pay dividends. As of

September 26, 2020,

the Company was in compliance with all covenants contained in the Revolving Credit Facility (as amended). The Company believes that it will maintain compliance with its financial covenants for the foreseeable future.

Borrowings under the line of credit as of

September 26, 2020

and

December 28, 2019

were

$13.3

million and

$34.8

million, respectively. At

September 26, 2020

and

December 28, 2019

there were letters of credit outstanding for

$1.7

million and

$1.6

million, respectively. At

September 26, 2020,

the Company had availability for additional borrowings under the Revolving Credit Facility of

$30.0

million.

Impact to Line of Credit from COVID-

The Company is negatively impacted by COVID-

as more fully described in Footnote

as well as the Segment Discussion, and Liquidity and Capital Resources sections in Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company believes that its current line of credit is adequate to provide the necessary liquidity while COVID-

impacts its operations. While the Company does expect to be in compliance with its financial covenants in the line of credit for the foreseeable future, the Company can give

assurance that the line of credit will be available to the Company.