Notes receivable consists of mezzanine loans and other loan arrangements. The following table is a summary of our notes receivable components at December 31, 2021 and 2020 (in thousands):

(1)	Subsequent to December 31, 2021, we funded an additional $5,750 under the HMG Healthcare, LLC (“HMG”) working capital loan.

The following table summarizes our notes receivable activity for the years ended December 31, 2021 through 2019 (in thousands):


	Year Ended December 31,
		2021			2020			2019
Advances under notes receivable	$	16,353	⁽¹⁾	$	2,078		$	8,967	⁽²⁾
Interest reserve withheld		353			—			—
Principal payments received under notes receivable		(2,694)			(5,275)			(3,503)
Reclassified to lease incentives		—			(300)	⁽³⁾		(200)	⁽³⁾
Notes receivable reserve		(140)			35			(52)
Net increase (decrease) in notes receivable	$	13,872		$	(3,462)		$	5,212

(1)

Funding under working capital notes and mezzanine loans with interest ranging between 4.0% and 8.0% and maturities between 2022 and 2031. During 2021, we originated a $4,355 mezzanine loan and withheld a $353 interest reserve. The mezzanine loan has a three-year term with two 12-month extensions. The initial rate is 8.0% for the first 18 months increasing to 10.5% thereafter with an 10.5% IRR. Additionally, we provided the operator a $25,000 secured working capital loan maturing in September 2022 to facilitate the transition of the 11 properties from Senior Care and Abri Health. During 2021, we funded $9,900 under this working capital loan and funded an additional $5,750 subsequent to December 31, 2021.

(2)

During 2019, we originated a $6,800 mezzanine loan commitment for the development of a 204-unit ILF/ALF/MC in Georgia. The mezzanine loan has a five-year term and a 12.0% return, a portion of which is paid in cash, and the remaining portion of which is deferred during the first 46 months. Additionally, we originated a $1,400 note agreement, funding $1,304 with a commitment to fund $96. The note bears interest at 7.0%. Further, we originated a $550 note agreement, funding $500 with a commitment to fund $50. The note bears interest at 7.5%

(3)	Represents an interim working capital loan related to a development project which matured upon completion of the development project and commencement of the lease.