Loan & DebtMay 1, 2026, 04:13 PM
NextNRG Secures $1M Loan with 203% APR; CEO Guarantees Debt
AI Summary
NextNRG, Inc. entered into a Business Loan and Security Agreement with Venture Debt, LLC, securing a $1,000,000 loan. The company received $930,000 after a $70,000 origination fee, with a total repayment obligation of $1,450,000, reflecting an annual percentage rate of approximately 203.17%. The loan is to be repaid in 24 weekly installments by October 13, 2026. The agreement includes restrictive covenants, comprehensive events of default, and is personally guaranteed by CEO Michael D. Farkas, secured by all company and his personal assets.
Key Highlights
- NextNRG secured a $1,000,000 business loan from Venture Debt, LLC.
- The company received net proceeds of $930,000 after a $70,000 origination fee.
- Total repayment obligation is $1,450,000, including $450,000 in interest.
- The annual percentage rate (APR) for the loan is approximately 203.17%.
- The loan is to be repaid in 24 weekly installments of $60,417, maturing October 13, 2026.
- CEO Michael D. Farkas personally guaranteed the loan.
- The loan is secured by all company assets and Mr. Farkas's personal property.
- The agreement includes restrictive covenants and comprehensive events of default.