SBA Paycheck Protection Program Loans

12 Months Ended

Dec. 31, 2020

SBA Paycheck Protection Program Loans

Note 7. SBA Paycheck Protection Program Loans

Note 7: SBA Paycheck Protection Program Loans

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 Loans”). The SBA Loans have a maturity date of 2 years from the initial disbursement and carries an interest rate of 1% per year. The SBA Loans are 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. As of December 31, 2020, the Company has filed the application for forgiveness with SBA but has not yet received a decision from the SBA as to whether the full or a part of the loans will be forgiven. The Company has not paid principal or interest relating to the SBA loans as of December 31, 2020. The accrued interest expense relating to these loans for years ended December 31, 2020 and 2019 was approximately $0.02 million and $0, respectively. As of December 31, 2020, the SBA loans had an outstanding principal balance of $3.40 million included in notes payable on the Consolidated Balance Sheet.

	Debt Obligation
2021		2,630,962
2022		768,538
2023		-
2024		-
2025		-
Thereafter		-
Total Commitments	$	3,399,500