Long Term Notes Disclosure

9 Months Ended

Sep. 30, 2020

Notes

Long Term Notes Disclosure

6. Long Term Notes

On September 15, 2020, the Company received an Economic Injury Disaster Loan (“EIDL” or the “Loan”) from the Small Business Administration (“SBA”), in the amount of $78,200. Proceeds were $78,100 under the terms.  The Loan, which is in the form of a promissory note dated September 10, 2020, matures on September 10, 2050, and bears interest at a rate of 3.75% per annum.  Payments are to be made monthly in the amount of $382, beginning as of September 10, 2021.  The loan terms provide for a collateral interest for the SBA, and limits the use of proceeds to working capital to alleviate the effects of Covid-19 on the Company’s economic condition.

The Loan consists of the following:

	September 30, 2020	December 31, 2019
	(Unaudited)
U.S. SBA term note payable in equal monthly installments of $382, bearing an interest rate of 3.75% and maturing in September 2050.	$ 78,100	$  -
Less current portion	-	-
Long-term debt, excluding current portion	$ 78,100	$  -

Unlike the Paycheck Protection Program (“PPP”), established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) enacted March 27, 2020, the EIDL program does not currently provide a mechanism for loan forgiveness.

The Loan is projected to amortize as follows:	Payments against Principal
2020	$	-
2021	$	500
2022	$	1,538
2023	$	1,597
2024	$	1,657
2025	$	1,721
Remaining principal to be paid 2026 to 2050:	$	71,087