Exhibit 7 - Loan Document of Plaintiff Johnson — Marshall Prestamos (Dkt. 139.8)

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Case 5:21-cv-04337-JMG Document139-8 Filed 09/06/24 Page1of/7

EX. 7 -- THE LOAN DOCUMENT CONTRACT
BETWEEN PRESTAMOS AND
PLAINTIFF JOHNSON
DocuSign Envelope |D: GBFZA CBA Cy EG LES? MES S>cument 139-8 Filed 09/06/24 Page 2 of 7

U.S. Small Business Administration

3B NOTE

U.S. Soll Business Administration

SBA Loan # 1437009005
SBA Loan Name Paycheck Protection Program
Date 5/18/2021
Loan Amount $ 20780
Interest Rate Fixed at 1%
Borrower
Alyshia Johnson
Operating Company
Alyshia Johnson
Lender Prestamos CDFI, LLC

1. PROMISE TO PAY:

In return for the Loan, Borrower promises to pay to the order of Lender the amount of

$ 20780 Dollars,

interest on the unpaid principal balance, and all other amounts required by this Note.

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DEFINITIONS:

“Collateral” means any property taken as security for payment of this Note or any guarantee of this Note.
“Guarantor” means each person or entity that signs a guarantee of payment of this Note.
“Loan” means the loan evidenced by this Note.

“Loan Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who
pledges collateral.

“SBA” means the Small Business Administration, an Agency of the United States of America.

SBA Form 147 (06/03/02) Version 4.1 Page 1/6

PRESTAMOS-00316597
DocuSign Envelope 1D: CBF eA G8 A057 YEG LSS AES tS>cument 139-8 Filed 09/06/24 Page 3 of 7

3. PAYMENT TERMS:

Borrower must make all payments at the place Lender designates. The payment terms for this Note are:

Initial Deferment Period: No payments are due on this loan beginning on the date of first disbursement of this loan until
the loan forgiveness payment is remitted to the Lender by the SBA. Interest will continue to accrue during the deferment
period.

Loan Forgiveness:

First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered
period following loan disbursement:

oEmployee and compensation levels are maintained

oThe loan proceeds are spent on payroll costs and other eligible expenses; and

oAt least 60 percent of the proceeds are spent on payroll costs

Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8 to 24 week covered
period following loan disbursement:

oEmployce and compensation levels are maintained in the same manner as required for the First Draw PPP loan

oThe loan proceeds are spent on payroll costs and other eligible expenses; and

oAt least 60 percent of the proceeds are spent on payroll costs

The amount of loan forgiveness shall be calculated (and may be reduced) in accordance with the requirements of the
Paycheck Protection Program, including the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act). Not more than 40% of the amount forgiven can be attributable to non-payroll costs.

Maturity: This Note will mature five years from date of first disbursement of this loan.

Repayment Terms: The interest rate on this Note is one percent per year. The interest rate is fixed and will not be
changed during the life of the loan.

For any amounts that remain owing on this Note after the SBA remits the forgiveness payment, Borrower must pay
principal and interest payments, in such amount as is required to fully amortize the unpaid balance of this Note over the
remaining term, beginning one (1) month following the SBA's forgiveness payment. If a forgiveness application is not
made within ten (10) months of the last day of the covered period, Borrower must pay principal and interest payments in
such amount as is required to fully amortize the unpaid balance of this Note over the remaining term. Payments must be
made on the 1st calendar day in the months they are due.

Lender will apply cach installment payment first to pay interest accrued to the day Lender received the payment, then to
bring principal current, and will apply any remaining balance to reduce principal.

Loan Prepayment: Notwithstanding any provision in this Note to the contrary:

Borrower may prepay this Note at any time without penalty. Borrower may prepay 20 percent or less of the unpaid
principal balance at any time without notice. If Borrower prepays more than 20 percent and the Loan has been sold on the
secondary market, Borrower must: a. Give Lender written notice; b. Pay all accrued interest; and c. If the prepayment is
received less than 21 days from the date Lender received the notice, pay an amount equal to 21 days interest from the date
lender received the notice, less any interest accrued during the 21 days and paid under b. of this paragraph. If Borrower
does not prepay within 30 days from the date Lender received the notice, Borrower must give Lender a new notice.

Non-Recourse: Lender and SBA shall have no recourse against any individual shareholder, member or partner of
Borrower for non-payment of the loan, except to the extent that such shareholder, member or partner uses the loan

proceeds for an unauthorized purpose.

SBA Form 147 (06/03/02) Version 4.1 Page 2/6

PRESTAMOS-00316598
DocuSign Envelope ID: CBA 871 CEL S87 IES bcument 139-8 Filed 09/06/24 Page 4 of 7

4. DEFAULT:

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower

or Operating Company:

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Fails to do anything required by this Note and other Loan Documents;

Defaults on any other loan with Lender;

Does not preserve, or account to Lender’s satisfaction for, any of the Collateral or its proceeds;

Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;
Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;
Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect
Borrower’s ability to pay this Note;

Fails to pay any taxes when due;

Becomes the subject of a proceeding under any bankruptcy or insolvency law;

Has a receiver or liquidator appointed for any part of their business or property;

Makes an assignment for the benefit of creditors;

Has any adverse change in financial condition or business operation that Lender believes may materially affect
Borrower’s ability to pay this Note;

Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior
written consent; or

Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to
pay this Note.

5. LENDER’S RIGHTS IF THERE IS A DEFAULT:

Without notice or demand and without giving up any of its rights, Lender may:

A.

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Require immediate payment of all amounts owing under this Note;
Collect all amounts owing from any Borrower or Guarantor;

File suit and obtain judgment;

Take possession of any Collateral; or

Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.

6. LENDER’S GENERAL POWERS:

Without notice and without Borrower’s consent, Lender may:

A. Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses;

B. _ Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan
Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments
for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s
fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the
expenses to the principal balance;

C. Release anyone obligated to pay this Note;

D. Compromise, release, renew, extend or substitute any of the Collateral; and

E. Take any action necessary to protect the Collateral or collect amounts owing on this Note.

SBA Form 147 (66/03/02) Version 4.1 Page 3/6

PRESTAMOS-00316599
DocuSign Envelope 1D: CBF eA G8 A057 YEO LEST AES S>cument 139-8 Filed 09/06/24 Page 5 of7

7. WHEN FEDERAL LAW APPLIES:

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations.
Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing
liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local
control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law
to deny any obligation, defeat any claim of SBA, or preempt federal law.

8. SUCCESSORS AND ASSIGNS:

Under this Note, Borrower and Operating Company include the successors of each, and Lender includes its successors
and assigns.

9. GENERAL PROVISIONS:

A. All individuals and entities signing this Note are jointly and severally liable.
B. Borrower waives all suretyship defenses.

C. Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable
Lender to acquire, perfect, or maintain Lender’s liens on Collateral.

D. Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender
may delay or forgo enforcing any of its rights without giving up any of them.

E. Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

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If any part of this Note is unenforceable, all other parts remain in effect.

G. To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including
presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim
that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired
Collateral; or did not obtain the fair market value of Collateral at a sale.

SBA Form 147 (66/03/02) Version 4.1 Page 4/6

PRESTAMOS-00316600
DocuSign Envelope 1D: CBF 2A G8 A057 YEO LSS AES S>cument 139-8 Filed 09/06/24 Page 6 of 7

10. STATE-SPECIFIC PROVISIONS:

None
Unless otherwise prohibited by law, the following additional provisions will apply:

Release of Lender. In consideration of the agreement of the Lender to provide this Note, and other good and
valuable consideration, which consideration is agreed by Borrower to be good and sufficient, Borrower RELEASES,
ACQUITS AND FOREVER DISCHARGES the Lender, its directors, officers, shareholders, agents, contractors,
employees, affiliates, attorneys, successors and assigns from any and all claims, demands, liens, damages, actions
or suits, of whatsoever nature or character, whether statutory (including without limitation usury and deceptive trade
practices claims), in contract or in tort, Known or unknown, which have accrued or may accrue to Borrower or any
creditor or affiliate of Borrower on account of any injuries, damages or losses or otherwise arising out of or in any
way connected to (i) any extension of credit by the Lender to Borrower on or prior to the date hereof, or (ii) any
matter or thing done, omitted or suffered to be done by the Lender, its directors, officers, shareholders, agents,
employees, affiliates, attorneys, predecessors or assignors on or prior to the date hereof.

Notwithstanding anything else contained herein, this Note is not secured and there are no guarantors.

SBA Form 147 (66/03/02) Version 4.1 Page 5/6

PRESTAMOS-00316601
DocuSign Envelope ID: Cra BF ey EGU SS? IMS Document 139-8 Filed 09/06/24 Page 7 of 7

11. BORROWER’S NAME(S) AND SIGNATURE(S):

By signing below, each individual or entity becomes obligated under this Note as Borrower.

Borrower: Shia Johnson

DocuSigned by:
| CY yyo om 5/18/2021
By Ats4D4BE92BMOS— Date

SBA Form 147 (66/03/02) Version 4.1 Page 6/6

PRESTAMOS-00316602

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