Short Term Notes Payable

12 Months Ended

Dec. 31, 2022

Note 9 – Short Term Notes Payable

Description	December 31, 2022		December 31, 2021
Bill’d Exchange, LLC, an equipment capital lender, initial financing August 2, 2019, finances equipment for commercial contracted customers in varying amounts – Now included in Accounts Payable - Vendors	$	-	$	20,000
Merchant loan – Green Capital -This note has been written off		-		7,747
SBA loan for payroll This loan has been forgiven by the SBA		-		128,232
Note due to former Director		60,000		-
Interest on Directors note		57,687		-
Total	$	117,687	$	155,979

The Former Director of ABCO Energy made a loan to the Company in 2010 in the amount of $60,000 for initial working capital. This demand note provides for interest at 12% per annum and is unsecured. This note resulted in an accrued interest total of $57,687 accrued and unpaid on December 31, 2022 and $50,465 at December 31, 2021.

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 the 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 but is included in accounts payable in 2022. The balance on December 31, 2022 was recorded as a vendor in accounts payable and $20,000 on December 31, 2021.

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, 2022, the Company has reduced the balance to $0.

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 are 3.75% interest and delayed payments until notified. The Loan is from the Bank of America and is guaranteed by the SBA under the PPP program resulting from the COVID-19 pandemic. This Loan was forgiven during 2022.

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.