Reliance Global Group Amends Credit Agreement, Approves SMI Sale

What Happened
Reliance Global Group, Inc. (filed 8-K on Sept 11, 2026) announced that on Sept 4, 2026 it and several wholly owned subsidiaries entered a Sixth Amendment to their Master Credit Agreement with Oak Street Funding LLC. The amendment permits the sale of Southwestern Montana Insurance Center, LLC (SMI) while requiring that 50% of the sale proceeds — $1,207,324.67 (the “Loan Paydown”) — be applied to the term loan identified as Loan ID 121393 instead of applying the full proceeds to repay the loan. Upon receipt of the Loan Paydown, Oak Street will release SMI as a borrower and remove its liens on SMI’s assets. Effectiveness was subject to customary conditions, including a $15,000 amendment fee.

Key Details

• Amendment date: Sept 4, 2026; Form 8-K filed Sept 11, 2026.
• Loan Paydown: $1,207,324.67 applied to Loan ID 121393 (50% of SMI sale proceeds).
• Fee/conditions: $15,000 amendment fee and customary conditions precedent for effectiveness.
• Guarantors reaffirmed guarantees and released Oak Street from claims through the effective date — guarantors include Reliance Global Group, Reliance Global Holdings, Reliance Insurtech, Kush Benefit Solutions, and executives Ezra S. Beyman (Chairman & CEO), Debra S. Beyman and Yaakov A. Beyman.

Why It Matters
This amendment lets Reliance retain a portion of the SMI sale proceeds rather than using all proceeds to repay Oak Street, improving the company’s near-term cash flexibility while still reducing a portion of the related term loan by $1.207M. It also removes SMI from Oak Street’s collateral and borrower list once the paydown is made, which could simplify that subsidiary’s operations post-sale. The change depends on customary closing conditions and includes guarantor reaffirmations; the company cautions that anticipated benefits may not be realized and may still need additional capital.