SBA Paycheck Protection Program Loan

9 Months Ended

Sep. 30, 2020

SBA Paycheck Protection Program Loan

Note 7. SBA Paycheck Protection Program Loan

Note 7: SBA Paycheck Protection Program Loan

In April, 2020 SharpSpring entered into two loan agreements with United States Small Business Administration under the Paycheck Protection Program for a total loan amount of $3.40 million, (“SBA Loan”). The SBA Loan has a maturity date of 2 years from the initial disbursement and carries an interest rate of 1% per year. Principal and interest payments begin 7 months from the initial date of disbursement. The SBA Loan is eligible for forgiveness as part of the CARES Act approved by US Congress on March 19, 2020 if certain requirements are met. The Company continues to evaluate and monitor the requirements of the CARES Act that allow for forgiveness. The Company has not paid interest relating to the SBA loan as of September 30, 2020. The accrued interest expense relating to these loans for three months ended September 30, 2020 and 2019 was approximately $8,000 and $0, respectively. The accrued interest expense relating to these loans for nine months ended September 30, 2020 and 2019 was approximately $15,000 and $0, respectively. As of September 30, 2020, the SBA loan had an outstanding principle balance of $3.40 million included in notes payable.

	Debt Obligation
2020	$	360,703
2021		2,270,259
2022		768,537
Total Commitments	$	3,399,499