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7. LONG TERM DEBT

12 Months Ended

Dec. 31, 2019

	December 31,
	2019			2018

Northwest Farm Credit Services Loan #4		1,364,964			1,483,733
Northwest Farm Credit Services Loan #5		5,046,122			5,333,195
Toyota Credit Corporation		12,431			23,906
		6,423,517			6,840,834
Debt issuance costs		(158,978	)		(172,225	)
Current portion of long-term debt		(438,378	)		(417,293	)

	$	5,826,161		$	6,251,316

Long-term debt consists of:

The Company has two long term debt agreements with Farm Credit Services with an aggregate outstanding balance of $6,411,086 and $6,816,928 as of December 31, 2019 and 2018, respectively. The outstanding loans require monthly principal and interest payments of $62,067 for the life of the loans, at annual fixed interest rates of 4.75% and 5.21%, and with maturity dates of 2028 and 2032. The general purposes of these loans were to make capital improvements to the winery and vineyard facilities.

The loan agreements contain covenants, which require the Company to maintain certain financial ratios and balances. At December 31, 2019, the Company was in compliance with these covenants. In the event of future noncompliance with the Company’s debt covenants, FCS would have the right to declare the Company in default, and at FCS’ option without notice or demand, the unpaid principal balance of the loan, plus all accrued unpaid interest thereon and all other amounts due shall immediately become due and payable.

The Company has an outstanding loan with Toyota Credit Corporation maturing in February 2021, at zero interest, with an outstanding balance of $12,431 and $23,906 as of December 31, 2019 and 2018, respectively. The purpose of this loan was to purchase a vehicle.

Future minimum principal payments of long-term debt mature as follows for the years ending December 31:

2020		438,378
2021		450,040
2022		472,420
2023		496,970
2024		522,798
Thereafter		4,042,911

	$	6,423,517

The weighted-average interest rates on the aforementioned borrowings for the fiscal years ended December 31, 2019 and 2018 was 5.09% and 5.09% respectively.