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SBA Loan Payable
3 Months Ended
Mar. 31, 2023
Small Business Administration Loan Payable Abstract  
Small Business Administration Loan Payable [Text Block]

Note 8: SBA Loan Payable

 

PPP Loan

 

During March 2020, in response to the COVID-19 crisis, the federal government announced plans to offer loans to small businesses in various forms, including the Payroll Protection Program, or “PPP”, established as part of the Corona Virus Aid, Relief and Economic Security Act (“CARES Act”) and administered by the U.S. Small Business Administration. On April 25, 2020, the Company entered an unsecured Promissory Note with Bank of America for a loan in the original principal amount of $460,400, and the Company received the full amount of the loan proceeds on May 4, 2020 (the “PPP Loan”). The PPP Loan bears interest at the rate of 1% per year. During the year ended December 31, 2022, the Company accrued interest in the amount of $4,632

 

During the three months ended March 31, 2023, the Company accrued interest in the amount of $1,135 on the PPP Loan; at March 31, 2023, the balance due on this loan was principal in the amount of $460,400 and accrued interest in the amount of $12,424. This loan is in default at March 31, 2023.