9. Term Loan

In April 2016, the Company entered into a $1.0 million term loan (the “Term Loan”). On January 25, 2019, the Company amended the Term Loan to increase the Company’s borrowing capacity to $5.0 million, which amount remains secured by the Company’s certificates of deposit, money market account, investment property and deposit or investment accounts. As amended, the Term Loan bears interest at the greater of the prime rate less 1% and 4.25%. The effective interest rate was 4.40% and 3.95% for the years ended December 31, 2019 and 2018, respectively. Under the Term Loan, the Company is required to make monthly interest-only payments through January 2020 and is required to make 36 equal monthly payments of principal plus accrued interest thereafter through January 2023. The Term Loan is secured by all certificates of deposit, money market accounts, cash, securities, investment property and deposit or investment accounts. Interest expense under the Term Loan was approximately $209,000 and $25,000 for the years ended December 31, 2019 and 2018, respectively. The outstanding balance on the Term Loan totaled $5.0 million and $460,000 as of December 31, 2019 and 2018, respectively.

Future maturities of the Term Loan as of December 31, 2019 are as follows:


(in thousands)
2020		1,528
2021		1,667
2022		1,667
2023		138
Total		5,000
Less: current portion of term loan		(1,667)
Term loan, net of current portion	$	3,333