. Debt

	September 30		December 31
	2020		2019

Revolving line of credit	$	500,000	$	500,000
PPP SBA note		862,000		-
		1,362,000		500,000
Less current portion		977,229		500,000
Total long-term debt	$	384,771	$	-

Term Loan

November 5, 2020,

we entered into a new

$4,000,000

term loan agreement with our primary lender. The new term loan is for a period of

five

years, with a fixed interest rate of

4.25%,

and requires monthly payments of principal and interest under a

twenty

-year amortization, with a balloon payment for the outstanding balance due and payable at the end of the term.

Borrowings under the new term loan agreement are secured by all of our tangible and intangible assets and by a mortgage on the real estate of our headquarters facility. In addition, the term loan is secured by a personal guarantee(s) by

three

of our significant shareholders (“Guarantors”). In consideration for the personal guarantee(s), we will pay a

one

-time aggregate payment of

$200,000

to be shared among the Guarantors.

Proceeds from the term loan agreement were used to pay off our

$500,000

outstanding revolving line of credit balance and to fund our loan guarantor payments. The remaining term loan proceeds are anticipated to fund our stock split transactions as described in Note

as well as provide funds for general working capital purposes.

Reliv' International, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

. Debt

(continued)

Revolving Line of Credit

September 30, 2015,

we entered into a series of lending agreements with our primary lender which included agreements for a term loan and a revolving credit facility. The term loan was repaid in

2018

and the revolver has been periodically amended and extended.

Effective with a

September 11, 2018

amendment, the revolving line of credit's maximum borrowing amount was

$750,000.

The revolver's maturity date was

April 29, 2019

and the revolver's interest rate was based on the

-day LIBOR plus

2.25%.

January 2019,

we borrowed

$500,000

under the revolving line of credit.

Effective with a

March 25, 2019

amendment, the revolving line of credit's maturity date was extended to

April 28, 2020

and the interest rate was revised to the

-day LIBOR plus

3.00%.

As amended, the revolver's maximum borrowing amount remained

$750,000.

April 28, 2020,

our revolving line of credit agreement was extended

six

months to

October 28, 2020

under the same terms and conditions as the expiring agreement. At

September 30, 2020,

outstanding borrowings under the revolving line of credit were

$500,000

at an interest rate of

3.16%.

November 5, 2020,

the

$500,000

balance under the line of credit was paid off from the proceeds of the new term loan.

PPP SBA Note

May 4, 2020,

we executed a promissory note (“SBA Note”) dated

April 20, 2020

in the amount of

$862,000

with our primary lender under the

March 2020

U.S enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act Payroll Protection Program (“PPP”). In accordance with the PPP, we used the loan proceeds of

$862,000

primarily for payroll costs. The PPP SBA Note is scheduled to mature

April 20, 2022

and has an interest rate of

1.0%.

The PPP SBA Note is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act which include:

	●	A deferral of principal repayment and interest for six months from loan origination, and
	●	The opportunity to apply for possible loan forgiveness for some or all of the loan amount.

Our PPP SBA loan forgiveness accounting policy is to recognize, if applicable, any loan forgiveness amounts only when we have applied for loan forgiveness, forgiveness realization is probable, and the forgiveness amount is reasonably determinable. At

September 30, 2020,

we have

not

applied for PPP SBA loan forgiveness.