v3.26.1
Related Party Transactions
12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

13. Related Party Transactions

 

The Company has two loan agreements with Daniel M. Wallach, our CEO, and his wife, pursuant to which they provide the Company with the Wallach LOC and the Wallach Trust LOC. The agreements lay out the terms under which those members can lend money to us, providing that we desire the funds, and the members wish to lend. The interest rate on both the Wallach LOC and the Wallach Trust LOC generally equals prime plus 3%, as more fully described in Note 9.

 

 

In June 2018, we entered into a line of credit from our former Partner, William Myrick. The Myrick LOC is collateralized by a lien against all of our assets. The Myrick LOC has a maximum principal borrowing amount of $1,000 and is payable to Mr. Myrick. As of December 31, 2025, there were no amounts borrowed against the Myrick LOC, and we have no intention of borrowing any amounts under the Myrick LOC following Mr. Myrick’s termination in March 2025. The Myrick LOC is evidenced by a promissory note, is payable upon demand of the lender and generally bears an interest rate equal to the prime rate plus 3%, as more fully described in Note 9.

 

Mrs. Leslie, our CFO, and Mr. Reynolds, our EVP of Sales, each own 1.17% of our Class A common units. Mrs. Harshman, our EVP of Operations, owns 2.35% of our Class A common units. Our CEO Mr. Wallach and his wife and the Wallach Living Trust wife own 0.95% and 90.83% of our Class A common units, respectively. Our three Board of Managers, Mr. Sheldon, Mr. Summers and Mr. Rauscher each own 1.17% of our Class A common units.

 

Mr. Wallach and his wife’s parents own 17.83% and 3.32% of our Series C Preferred Units, respectively. One of our managers, Gregory L. Sheldon, owns 14.43% of our Series C Preferred Units.

 

A son of one of our managers is a minor participant in the Shuman LOC, which is more fully described in Note 9. In addition, Mr. Summers’ son is a lender to the Company pursuant to a New LOC Agreement, with principal not to exceed $2,000.

 

One of our executives, Mr. Spatola has subordinated promissory note with a principal balance and an annual interest rate of $200 and 9.5%, respectively.

 

The Company has accepted investments under the Notes Program and other unsecured debt from employees, managers, members, and relatives of managers and members, with $10,673 outstanding as of December 31, 2025. For the years ended December 31, 2025 and 2024 our investments from affiliates, which exceed $120 by individual, through our Notes Program and other unsecured debt are detailed below:

 

   Relationship to  Amount invested as of  

Weighted

average

interest rate

as of

  

Interest

earned during

the year ended

 
   Shepherd’s  December 31,   December 31,   December 31, 
Investor  Finance  2025   2024   2025   2025   2024 
Eric A. Rauscher  Independent Manager  $477   $477                   10.00%  $48   $48 
                             
Joseph Rauscher  Parent of Independent Manager   126    126    10.00%   13    13 
                             
Daniel and Joyce Wallach  Member   244    304    9.93%   24    29 
                             
Gregory L. Sheldon  Independent Manager   1,366    1,035    9.35%   128    98 
                             
Lamar Sheldon  Parent of Independent Manager   -    210    0.00%   21    21 
                             
Kenneth Summers  Independent Manager   260    235    8.50%   22    16 
                             
Schultz Family Revocable Living Trust  Trustee is Mother-in-Law of Member   230    208    9.39%   22    19 
                             
Barbara Harshman  Member   140    129    9.04%   12    13 
                             
Kimberly Bedford  Manager   314    314    10.00%   31    31 
                             
Thomas Spatola  EVP of Lending Operations   595    595    9.83%   58    59 
                             
Scott and Leah Summers  Son of Independent Manager   650    250    8.50%   55    15 
                             
Jeffrey Eppinger  5% Member   2,939    2,939    8.28%   243    309 
                             
Bruce and Jean Eppinger  5% Member   2,852    2,914    9.89%   282    291 
                             
Paula Eppinger  Parent of 5% Member   150    150    10.00%   15    15