Long Term Notes Disclosure

9 Months Ended

Sep. 30, 2021

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. After a processing fee, net proceeds were $78,100 under the terms. Following the close of the second quarter of 2021, the Company received approval for an extension of the loan. The additional loan amount was $121,900, bringing the total loan to $200,000. The net additional proceeds were $121,800. As a loan extension, terms and maturity are essentially unchanged.

The Loan, which is in the form of a promissory note initially 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, beginning as of September 10, 2022. 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. Interest and principal payments begin in September of 2022.

The Loan consists of the following:

	September 30, 2021	December 31, 2020
	(Unaudited)
U.S. SBA term note payable in equal monthly installments, bearing an interest rate of 3.75% and maturing in September 2050.	$ 200,000	$ 78,200
Less current portion	(356)	(-)
Long-term debt, excluding current portion	$ 199,644	$ 78,200

PwrCor, Inc.

Notes to Financial Statements

September 30, 2021

(Unaudited)

6. Long Term Notes (continued)

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
2021	$	-
2022	$	1,356
2023	$	4,170
2024	$	4,329
2025	$	4,494
Remaining principal to be paid 2026 to 2050:	$	185,651
Total	$	200,000