Annual report pursuant to Section 13 and 15(d)

PAYCHECK PROTECTION PROGRAM LOAN

v3.22.1
PAYCHECK PROTECTION PROGRAM LOAN
12 Months Ended
Dec. 31, 2021
PAYCHECK PROTECTION PROGRAM LOAN  
NOTE 11 - PAYCHECK PROTECTION PROGRAM LOAN

NOTE 11 - PAYCHECK PROTECTION PROGRAM LOAN

 

On May 14, 2020 the Company executed a promissory note evidencing an unsecured loan in the amount of $28,000 under the PPP, which was established under the CARES Act and is administered by SBA. The Loan has been made through Citizens Business Bank (“Lender”).

 

Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. The Company has applied for forgiveness of all of loan granted under the PPP and forgiveness of PPP loan been granted effective March 17, 2021. The Company recognized a gain from the forgiveness of the PPP loan that is included in other miscellaneous income on the statement of operations.

 

On April 9, 2021 the Company received $131,440 from Citizens Business Bank as the second tranche loan under the PPP Loan. The maximum term of the PPP Loan is five -years and bears interest at a rate of 1.00% per annum. Monthly principal and interest payments are deferred for six months. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. However, no assurance is provided that forgiveness for any portion of the PPP Loan will be obtained.

 

The interest expense during the years ended December 31, 2021 and 2020 was $1,034 and $179, respectively. As of December 31, 2021, the accumulated interest on PPP Loan was $983.

The future principal payments are as follows:

 

Year

 

Amount

 

2022

 

 

31,580

 

2023

 

 

26,082

 

2024

 

 

26,344

 

2025

 

 

26,609

 

2026 and after

 

 

20,825

 

 

 

$ 131,440