ECONOMIC INJURY DISASTER LOAN
|9 Months Ended|
Sep. 30, 2022
|ECONOMIC INJURY DISASTER LOAN|
|ECONOMIC INJURY DISASTER LOAN||
NOTE 12 - ECONOMIC INJURY DISASTER LOAN
On July 17, 2020, the Company executed the standard loan documents required for securing a loan from SBA under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. Pursuant to the loan agreement, the principal amount of the Economic Injury Disaster Loan (“EIDL”) is $74,300, with proceeds to be used for working capital purposes. The EIDL loan is secured by the tangible and intangible personal property of the Company.
In accordance with the terms of the note: (i) interest accrues at the rate of 3.75% per annum, (ii) installment payments, including principal and interest, of $363 monthly, will begin Thirty (30) months from the date of the promissory Note, (iii) the balance of principal and interest will be payable over thirty (30) years from the date of the promissory note and (iv) SBA is granted a continuing security interest in and to any and all tangible and intangible personal property of the Company to secure payment and performance of all debts, liabilities and obligations of Borrower to SBA.
On April 28, 2020, the Company received $5,000 from the SBA as an advance on the EIDL, and the advance was forgiven during the prior period.
The interest expense during the three and nine months ended September 30, 2022 was $702 and $2,084, respectively. The interest expense during the three and nine months ended September 30, 2021 was $702 and $2,084, respectively. As of September 30, 2022 and December 31, 2021, the accumulated interest on EIDL Loan was $5,909 and $4,076, respectively.
During the three and nine months ended September 30, 2022, the Company made principal payment of $112 and interest payment of $251.
The future principal payments are as follows: