Short Term Notes Payable

12 Months Ended

Dec. 31, 2021

Note 9 – Short Term Notes Payable

Description	December 31, 2021		December 31, 2020
Bill’d Exchange, LLC, an equipment capital lender, initial financing August 2, 2019, finances equipment for commercial contracted customers in varying amounts	$	20,000	$	31,462
Merchant loan – Knight Capital Funding, LLC		-		33,694
Merchant loan – Pearl lending		-		51,750
Merchant loan – Green Capital		7,747		11,748
Private money loan from Perfectly Green Corporation		-		33,754
Private money loan from prior officer of ABCO		-		61,052
SBA loan for Payroll - forgiven		-		123,999
SBA loan for payroll		128,232
Total	$	155,979	$	347,459

Bill’d Exchange, LLC, a customer equipment capital lender, made their initial financing on August 2, 2019. They finance equipment for commercial contracted customers in varying amounts. These loans bear interest at varying rates and are paid weekly for the amount of interest due on the account at each date. Each loan is secured by the accounts receivable from the customer and by personal guarantee of an affiliated officer of ABCO Solar, Inc. On March 2, 2021, the Company made an agreement to pay $20,000 to settle this note in 5 payments of $4,000. This note is classified as short-term debt. The balance at December 31, 2021 was recorded at $20,000 and $31,462 on December 31, 2020.

On January 30, 2019, the Company borrowed $153,092 including principal and interest from Knight Capital Funding, LLC, and [“KCF”] bearing interest at 23% per annum, unsecured. This loan was refinanced on August 10, 2019 and replaced with a new loan of $144,900 from KCF. The balance and accrued interest on December 31, 2019, was $61,747. On February 18, 2020, ABCO defaulted on this loan due to the reduction in business from Covid-19. On March 29, 2021, the Company made a settlement payment on this note for $22,000. The savings on the payoff of this note was classified as “gain on extinguishment of debt” on our income statement.

On December 6, 2019, the Company borrowed $52,174 from Pearl Delta Funding that contained a repayment in the amount of $72,000 in 160 payments of $450. This unsecured note bears interest at the imputed rate of approximately 36% per annum. The unpaid balance of principal and interest on December 31, 2019, was $65,664. On February 18, 2020, ABCO defaulted on this loan due to the reduction in business from Covid-19 when the balance of the note was $51,750. On March 29, 2021, the company made a settlement payment in the amount of $36,998. The savings on the payoff of this note was classified as “gain on extinguishment of debt” on our income statement.

On December 31, 2019, ABCO borrowed $25,000 from Green Capital Funding, LLC. The proceeds from this loan were used to acquire the real estate purchased on the date of the loan. This unsecured loan bears interest at approximately 36% and has a repayment obligation in the amount of $35,250 in 76 payments. The unpaid balance of principal and interest on December 31, 2020, was $11,748 after several months of daily payment and a default on February 18, 2020, due to the reduction in business from Covid-19. As of the date of filing this report, no arrangements for resuming payments had been accomplished however the Company has been paying $1,000 per month for several months. As of December 31, 2021, the Company has reduced the balance to $7,747.

Mr. Charles O’Dowd, former President and Director of ABCO Energy resigned from all positions with the Company on October 7, 2019. Prior to his resignation, Mr. O’Dowd had loaned the Company $61,052 at the time. He currently holds a promissory note that is unsecured that also has unpaid interest accrual at 12-31-21 in the amount of $63,000 including imputed interest. Mr. O’Dowd has settled the amount due under this note for a cash payment of $5,000 and a monthly payment of $1,500 including interest, for 48 months until paid in full. The balance will require 42 payments after December 31, 2021. This loan is now classified as long-term debt.

On February 24, 2021, the Company executed a promissory note evidencing and unsecured loan (“Loan”) for $128,232 under the Paycheck Protection Plan (“PPP”). The terms of the Loan are 3.75% interest and delayed payments until notified. This Loan is forgivable, but no assurance can be given that the Company will receive forgiveness. The Loan is from the Bank of America and is guaranteed by the SBA under the PPP program resulting from the COVID-19 pandemic.

The Company borrowed $123,999 from Bank of America and the SBA guaranteed the loan under the EIDL program because of Covid-19 pandemic. This loan was forgiven in March of 2021 and the Company has no further obligation to the SBA or the Bank of America under this note. The forgiveness of this note was classified as “gain on extinguishment of debt” on our income statement.