Short Term Notes Payable

9 Months Ended

Sep. 30, 2022

Note 10 – Short Term Notes Payable

Description	September 30, 2022		December 31, 2021
Equipment capital lender, initial financing August 2, 2019, finances equipment for commercial contracted customers in varying amounts	$	-	$	20,000
Institutional lender - cash advance		-		7,747
SBA loan		-		128,232
Former Director Demand Note		60,000		60,000
Interest Due to Former Director		55,891		50,465
Total	$	115,891	$	266,444

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 entered an agreement to pay $20,000 to settle this Note in 5 payments of $4,000 each. Unpaid principal balance on this note at September 30, 2022 and December 31, 2021 was $20,000 and $20,000, respectively.

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 at 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. Outstanding principal balance as of September 30, 2022, and December 31, 2021 on the note was $0 and $7,747, respectively. This note was written off and canceled during 2022.

On May 3, 2020, Company entered into a promissory note evidencing an unsecured loan in the amount of $123,999.00 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to the Company is being made through Bank of America, N.A., a national banking association (the “Lender”). Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. No assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part. On March 9, 2021, the SBA and Bank of America notified the Company that the entire balance of this note has been forgiven by the Government. The Company recorded a gain on extinguishment of debt during the three months ended March 31, 2021, for approximately $123,999. Outstanding principal balance as of September 30, 2022 and December 31, 2021 on the note was $-0- and $-0- respectively.

On February 24, 2021, the Company executed a promissory note evidencing an unsecured loan (“Loan”) for $128,232 under the Paycheck Protection Plan (“PPP”). The terms of the Loan require 1.00% interest. This loan contains the same clauses as the previous EDIL loan described in the foregoing paragraph. Outstanding principal balance as of September 30, 2022 and December 31, 2021 on the note was $-0- and $128,232, respectively. On May 14, 2022, the SBA and the Bank of America notified the Company that the entire balance of the note and accrued interest has been forgiven by the Government.

The promissory note in the amount of $60,000 represents a loan in 2010 from a former Director who served the Company for nearly 12 years. The note provides for interest at 12% per annum and is unsecured. This note resulted in an interest charge of $55,891 accrued and unpaid on September 30, 2022 and $50,465 at December 31, 2021.