Stewards, Inc. Extends $1.6M Loan Payment to Oct 15, 2026

What Happened Stewards, Inc. (SWRD) filed an 8-K reporting Amendment No. 2 to its promissory note with FAVO Holdings, LLC, effective September 1, 2026. The amendment further modifies a note originally dated June 1, 2023 (original principal $4.7M) and previously amended June 1, 2026. Under the new amendment the outstanding $1,600,000 final installment — previously due September 1, 2026 — is now payable on October 15, 2026, and continues to accrue interest.

Key Details

• Final installment extended: maturity moved from Sept 1, 2026 to Oct 15, 2026.
• Interest for extension: $1.6M continues to bear simple interest at 10% p.a. for Sept 1–Oct 15, 2026, totaling $20,000 due on Oct 15, 2026 (computed straight-line). Previously accrued unpaid interest remains due on Oct 15.
• Default interest waiver: the 15% p.a. default rate under the original note is waived only for June 1–Oct 15, 2026 (including any missed payments on May 31 or Sept 1, 2026); if the company fails to pay in full on Oct 15, the 15% default rate is reinstated thereafter.
• Related-party note: Holder FAVO Holdings is owned 65% by Vincent Napolitano (Chairman Emeritus, former CEO) and 35% by Shaun Quin (CEO); Mr. Quin recused from the Board vote, and disinterested directors approved the amendment.

Why It Matters This amendment temporarily eases Stewards’ short-term cash obligation by delaying the $1.6M principal payment for about six weeks, but it increases the near-term cash due on Oct 15 by at least $20,000 in interest plus any previously accrued unpaid interest. The lender is a related party, which raises governance attention; the company says disinterested directors approved the change and the CEO recused. Investors should watch for the company’s cash position, any further amendments or refinancing, and whether the company meets the Oct 15 payment to avoid reinstatement of a steep 15% default interest rate.