(8) Line of Credit	9 Months Ended
Sep. 28, 2019
Commitments (note 4)
(8) Line of Credit	(8) Line of Credit In September 2019, the Company entered into revolving line of credit with The Massachusetts Business Development Corporation in the amount of $2.5 million. This agreement replaces the $1.25 million line of credit with Santander Bank, set to expire September 30, 2019. The agreement includes a demand note allowing the Lender to call the loan at any time. CPS may terminate the agreement without a termination fee after 3 years. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of LIBOR plus 650 basis points. The Company has provided BDC with an earnings projection for the year ended December 28, 2019 and the covenant states that until the projection is met, $500 thousand of the line will be locked. At September 29, 2019 the Company had $413 thousand of borrowings under this LOC and its borrowing base at the time would have permitted an additional $1.335 million to have been borrowed. The line of credit is subject to certain financial covenants.

(8) Line of Credit

9 Months Ended

Sep. 28, 2019

In September 2019, the Company entered into revolving line of credit with The Massachusetts Business Development Corporation in the amount of $2.5 million. This agreement replaces the $1.25 million line of credit with Santander Bank, set to expire September 30, 2019. The agreement includes a demand note allowing the Lender to call the loan at any time. CPS may terminate the agreement without a termination fee after 3 years. The LOC is secured by the accounts receivable and other assets of the Company and has an interest rate of LIBOR plus 650 basis points. The Company has provided BDC with an earnings projection for the year ended December 28, 2019 and the covenant states that until the projection is met, $500 thousand of the line will be locked. At September 29, 2019 the Company had $413 thousand of borrowings under this LOC and its borrowing base at the time would have permitted an additional $1.335 million to have been borrowed.

The line of credit is subject to certain financial covenants.