Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.22.2
Related Party Transactions
6 Months Ended
Jun. 30, 2022
Related Party Transactions  
Related Party Transactions

12.    Related Party Transactions

In the ordinary course of business, the Company may originate, fund, manage and service loans to shareholders. The underwriting process on these loans adheres to prevailing Company policy. The terms of such loans, including the interest rate, income, origination fees and other closing costs are the same as those applicable to loans made to unrelated third parties in the portfolio. As of June 30, 2022, and 2021, loans to known shareholders totaled $18,409,255 and $10,153,291, respectively. Interest income earned on these loans for the six months ended June 30, 2022 and 2021 totaled $666,584 and $416,965, respectively, and for the three months ended June 30, 2022 and 2021 totaled $312,546 and $246,006, respectively.

The wife of the Company’s chief executive officer is employed by the Company as its director of finance. For the six-month periods ended June 30, 2022 and 2021, the wife of the Company’s chief executive officer was paid $60,394 and $56,385, respectively, as compensation from the Company. For the three months ended June 30, 2022 and 2021, the corresponding amounts were $34,247 and $28,206, respectively. She retired from the company on June 30, 2022. In December 2021, the Company hired the daughter of the Company’s chief executive officer to perform certain internal audit and compliance services. For the three and six month periods ended June 30, 2022, she received compensation of $36,704 and $62,850, respectively. In January 2022, the Company hired the step-daughter of the Company’s chief executive officer to perform executive assistant and administrative services. For the three and six month periods ended June 30, 2022, she received compensation of $19,570 and $27,716, respectively.