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7. LONG TERM DEBT

12 Months Ended

Dec. 31, 2020

Long-term debt consists of:

	December 31,
	2020			2019
Northwest Farm Credit Services Loan #4	$	1,240,453		$	1,364,964
Northwest Farm Credit Services Loan #5		4,743,819			5,046,122
Toyota Credit Corporation		956			12,431
		5,985,228			6,423,517
Debt issuance costs		(145,731	)		(158,978	)
Current portion of long-term debt		(450,040	)		(438,378	)
	$	5,389,457		$	5,826,161

The Company has two long term debt agreements with Farm Credit Services with an aggregate outstanding balance of $5,984,272 and $6,411,086 as of December 31, 2020 and 2019, 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, 2020, 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 had an outstanding loan with Toyota Credit Corporation which matured and was paid in full in February 2021, at zero interest, with an outstanding balance of $956 and $12,431 as of December 31, 2020 and 2019, 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:

2021	$	450,040
2022		472,415
2023		496,965
2024		522,793
2025		549,965
Thereafter		3,493,050
	$	5,985,228

The weighted-average interest rates on the aforementioned borrowings for the fiscal years ended December 31, 2020 and 2019 was 5.11% and 5.09% respectively.