Exhibit
10.2


 


		U.S.
                                         Small Business

                                                       Administration









 


NOTE


 


	SBA
    Loan #	40959572-04
	 	 
	SBA
    Loan Name	SHEPHERD’S
    FINANCE LLC
	 	 
	Date	5/5/2020
	 	 
	Loan
    Amount	$361,485.42
	 	 
	Interest
    Rate	1.0%
    per annum (computed on the basis of the actual number of days elapsed in a year of 365 days)
	 	 
	Borrower	SHEPHERD’S
    FINANCE LLC
	 	 
	Lender	LCA
    Bank Corporation


 


	1.	PROMISE
    TO PAY:


 


In
return for the Loan, Borrower promises to pay to the order of Lender the Loan Amount, plus interest on the unpaid principal balance
at the Interest Rate, and all other amounts required by this Note.


 


	2.	DEFINITIONS


 





Unless
defined in this Section 2, capitalized terms shall have the meanings ascribed to them above.


 


“CARES
Act” means the Coronavirus Aid, Relief, and Economic Security Act.


 


“Deferral
Period” means the six (6) month period beginning on the date of this Note.


 


“Loan”
means the loan evidenced by this Note.


 


“Loan
Documents” means the documents related to this loan signed by Borrower. “Maturity Date” means twenty-four (24)
months from the date of this Note.


 


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







 


	3.	PAYMENT
    TERMS


 


The
payment terms for this Note are:


 


	 	A.	There
    shall be no payments due by Borrower during the Deferral Period. However, interest shall accrue during the Deferral Period.



 






    	 	 	 



     


    

 


	 	B.	Commencing
    one (1) month after the expiration of the Deferral Period, and continuing on the same day of each month thereafter until the
    Maturity Date, Borrower shall pay to Lender monthly payments of principal and interest, each in such equal amount required
    to fully amortize by the Maturity Date the principal amount outstanding on this Note on the last day of the Deferral Period.
    If a payment on this Note is more than ten (10) days late, Lender may charge Borrower a late fee of up to 5.0% of the unpaid
    portion of the regularly scheduled payment.
	 	 	 
	 	C.	This
    Note will mature on the Maturity Date. On the Maturity Date, Borrower shall pay to Lender any and all unpaid principal, plus
    accrued and unpaid interest and interest accrued during the Deferral Period.
	 	 	 
	 	D.	If
    any payment is due on a date for which there is no numerical equivalent in a particular calendar month, then it shall be due
    on the last day of such month. If any payment is due on a day that is not a Business Day, the payment will be made on the
    next Business Day. The term “Business Day” means a day other than a Saturday, Sunday or any other day on which
    banks in the State of Illinois are authorized to be closed.
	 	 	 
	 	E.	Payments
    shall be allocated among principal and interest at the discretion of Lender, unless otherwise agreed or required by applicable
    law. Notwithstanding the foregoing, in the event the Loan, or any portion thereof, is forgiven pursuant to the Paycheck Protection
    Program under the CARES Act, the amount so forgiven shall be applied to principal.
	 	 	 
	 	F.	Borrower
    may prepay this Note at any time without payment of any premium.
	 	 	 
	 	G.	Borrower
    must make all payments under this Note at the place Lender designates.
	 	 	 
	 	H.	Lender
    or any holder of this Note shall not be required to renew, extend or refinance this Note or any amounts due hereunder.


 


	4.	DEFAULT


 


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


 


	 	A.	Fails
    to do anything required by this Note and other Loan Documents;
	 	 	 
	 	B.	Defaults
    on any other loan with Lender;
	 	 	 
	 	C.	Does
    not disclose, or anyone acting on its behalf does not disclose, any material fact to Lender or SBA;
	 	 	 
	 	D.	Provides,
    or anyone acting on its behalf provides, to Lender or SBA any information that is inaccurate or incorrect;
	 	 	 
	 	E.	Defaults
    on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability
    to pay this Note.
	 	 	 
	 	F.	Fails
    to pay any taxes when due;
	 	 	 
	 	G.	Becomes
                                         the subject of a proceeding under any bankruptcy or insolvency law;

                                                                               

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



 






    	 	 	 



     


    

 


	 	I.	Makes
                                         an assignment for the benefit of creditors;

                                                                               

	 	J.	Has
    any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s
    ability to pay this Note;
	 	 	 
	 	K.	Reorganizes,
    merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent;
	 	 	 
	 	L.	Becomes
    the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this
    Note; or
	 	 	 
	 	M.	Makes,
    or anyone acting on its behalf makes, a materially false or misleading representation, attestation or certification to Lender
    or the SBA in connection with Borrower’s request for this Loan.


 





	5.	LENDER’S
    RIGHTS IF THERE IS A DEFAULT


 


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


 


	 	A.	Require
    immediate payment of all amounts owing under this Note;
	 	 	 
	 	B.	Collect
    all amounts owing from Borrower; or
	 	 	 
	 	C.	File
    suit and obtain judgment.


 


	6.	LENDER’S
    GENERAL POWERS


 


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


 


	 	A.	Enforce
    the terms of this Note or any other Loan Documents;
	 	 	 
	 	B.	Incur
    expenses to collect amounts due under this Note. Such expenses may include, without limitation, reasonable attorneys fees
    and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal
    balance of this Note; or
	 	 	 
	 	C.	Take
    any action necessary to collect amounts owing on this Note.


 


	7.	GOVERNING
    LAW; 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.


 


If
the SBA is not the holder, this Note shall be governed by and construed in accordance with the laws of the State of Illinois,
where the main office of Lender is located, without reference to any conflicts or choice of law provisions thereof. Borrower agrees
that any legal action or proceeding with respect to any of its obligations under this Note may be brought by Lender in any state
or federal court located in the State of Illinois, as Lender in its sole discretion may elect. Borrower submits to and accepts
in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. Borrower waives any
claim that the State of Illinois is not a convenient forum or the proper venue for any such suit, action or proceeding. The extension
of credit that is the subject of this Note is being made by Lender in Illinois.


 






    	 	 	 



     


    

 


	8.	SUCCESSORS
    AND ASSIGNS


 


Under
this Note, Borrower includes all successors, and Lender includes its successors and assigns.


 


	9.	GENERAL
    PROVISIONS



 


	 	A.	This
    Loan is being made under the Paycheck Protection Program pursuant to the CARES Act. Accordingly, the terms of this Note are
    subject to the Paycheck Protection Program and all regulations, rules, guidance and other requirements of such program and
    the SBA, including, but not limited to, eligibility for the Loan, use of Loan proceeds and Loan forgiveness as now or hereafter
    in effect. Borrower represents and certifies to Lender that it currently is, and at all times will be, in compliance with
    such regulations, rules, guidance and other requirements. Borrower acknowledges the speed of the implementation of the Paycheck
    Protection Program and agrees that additional documents may be required to document the Loan.
	 	 	 
	 	B.	The
    Loan is made for a business purpose. No proceeds from the Loan will be disbursed until all approvals have been obtained from
    Lender and the SBA and all conditions to such disbursement have been satisfied.
	 	 	 
	 	C.	All
    individuals and entities signing this Note are jointly and severally liable.
	 	 	 
	 	D.	Borrower
    waives all suretyship defenses.
	 	 	 
	 	E.	Borrower
    must sign all documents necessary at any time to comply with the Loan Documents.
	 	 	 
	 	F.	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.
	 	 	 
	 	G.	Borrower
    may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.
	 	 	 
	 	H.	If
    any part of this Note is unenforceable, all other parts remain in effect.
	 	 	 
	 	I.	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.
	 	 	 
	 	J.	This
    Note shall be construed in a manner consistent with the other Loan Documents.
	 	 	 
	 	K.	Borrower’s
    liability under this Note will continue with respect to any amounts the SBA may pay Lender based on an SBA guarantee of this
    Note. Any agreement with Lender under which SBA may guarantee this Note does not create any third party rights or benefits
    for Borrower and, if SBA pays Lender under such an agreement, the SBA or Lender may then seek recovery from Borrower of amounts
    paid by SBA.
	 	 	 
	 	L.	Within
    ninety (90) days following the date of this Note, Borrower shall submit to Lender a certified schedule of eligible amounts,
    together with all appropriate supporting documentation, for which Borrower may seek Loan forgiveness.



 






    	 	 	 



     


    

 


	 	M.	Borrower
    waives any defenses based on any claim that Lender did not obtain or perfect any guaranty of this Note from the SBA.
	 	 	 
	 	N.	Borrower
    shall remain responsible for any amounts under this Note not forgiven pursuant to the Paycheck Protection Program.


 


	10.	ELECTRONIC
    SIGNATURES


 


Borrower’s
electronic signature shall have the same force and effect as an original signature and shall be deemed (i) to be “written”
or “in writing” or an “electronic record,” (ii) to have been signed and (iii) to constitute a record established
and maintained in the ordinary course of business and an original written record when printed from electronic files. Such paper
copies or “printouts,” if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding,
will be admissible as between the parties to the same extent and under the same conditions as other original business records
created and maintained in documentary form.


 


	11.	BORROWER’S
    NAME AND SIGNATURE(S)


 





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


 


BORROWER:


 

SHEPHERD’S
FINANCE LLC


 


	 	By:	/s/
    Daniel M. Wallach, CEO	
	 	 	 	 
	 	Name:	DANIEL
    M. WALLACH, CEO	 
	 	 	 	 
	 	Title:	CEO