NOTES PAYABLE

Notes payable consist of the following:



	December 31,
	2016		2015
Note payable to a Bank, maturing June 2021; with monthly payments of approximately $25,000 of principal and interest fixed at 3.99%; collateralized by principally all assets of the Company.	$	1,328,549	$	1,575,951

Note payable to a Bank, maturing July 2031; with monthly payments of approximately $11,000 of principal and interest fixed at 5.29%; collateralized by principally all assets of Smith-Columbia Corporation and guaranteed by Smith-Midland Corporation.	1,293,542		—

Note payable to a Bank, maturing April 2021; with monthly payments of approximately $6,200 of principal and interest at prime at variable rate (5.29% at December 31, 2016); collateralized by certain property of the Company.	287,773		344,717

Installment notes, collateralized by certain machinery and equipment maturing at various dates, primarily through 2021, with weighted average interest at 4.2%.	1,023,170		239,702

A revolving line-of-credit evidenced by a note payable to a Bank, with the maximum amount of $2,000,000, maturing September 12, 2017, with interest only payments and an initial rate of 4.49% adjustable monthly (3.99% at December 31, 2016). The line-of-credit is collateralized by a first lien position on the Company's accounts receivable and inventory and a second lien position on all other business assets.	—		352,022

	3,933,034		2,512,392
Less current maturities	587,523		435,717

	$	3,345,511	$	2,076,675

The Company’s note payable, which matures in June 2021, with a balance of $1,328,549 at December 31, 2016, is secured by all of the assets of the Company. The commitment letter provided by the bank dated September 8, 2015 includes certain restrictive covenants, which require the Company to maintain minimum levels of tangible net worth, places limits on annual capital expenditures and the payment of cash dividends. As of July 2016 the payment of cash dividends was removed from the covenants and the limit on annual purchases of capital expenditures was raised to $1.5 million. At December 31, 2016, the Company was in compliance with all covenants pursuant to the loan agreement as amended except for the limit of $1,500,000 for the purchase of capital expenditures, for which the Company received a waiver for the excess capital expenditures in 2016.

The aggregate amounts of notes payable maturing in each of the next five years and thereafter are as follows:



Year Ending December 31,

2017	$	587,523
2018	603,299
2019	584,703
2020	604,010
2021	437,460
Thereafter	1,116,039

	$	3,933,034