So, we got an e-mail about a month ago that was a little confusing to us in that our SBA loan repayment did not need to start until 2024.
Our VOA Treasurer asked the SBA loan officer when our first payment was due on the loan, as well as a few other details, and the following is provided in response:
From: XXXXXXXX, XXXXXXXXXXX (Contractor)
Sent: Thursday, January 19, 2023 3:42 PM
To: VOA Treasurer
Subject: Regarding your SBA Loan Account/US SMALL BUSINESS ADMINISTRATION
SBA Loan Number: XXXXXXXXXX
Thank you for your request for the information regarding your SBA loan.
The information below is as follows:
Your loan was funded on 09/13/2021 in the amount of $175,300.00.
You have an interest rate of 2.75000% and a daily interest accrual of $13.21 a day.
As of 01/19/2023, your present payoff balance is currently at $181,718.86:
You presently have total interest in the amount of $6,418.86.
Your maturity date is set for 09/16/2051.
Your first payment is scheduled for 03/16/2024 in the amount of $787.00.
So, what does this information mean to us. As far as the budget is concerned nothing, we intent to book the SBA Loan cost on the ledger effective 1 January 2023 to ensure the funds we collect and the 50/50 distribution we voted on this past week can still go into effect without any long-term losses. Now, as for the physical repayment of the loan, we will not start that until we have to. So, the $9,444 will go into cash reserves until we have a BoD discussion in October 2023 as to what we should do with any cash above the authorized reserve we intend to have fully funded by the end of the year – the current goal is a $75K cash reserve for which we already have in excess of $50K from 2022 put aside.
