Shepherd's Finance POS AM 13 Apr 22 Prospectus update (post-effective amendment) Financial data

Cover

Cover	12 Months Ended
	Dec. 31, 2021
Entity Addresses [Line Items]
Document Type	POS AM
Amendment Flag	true
Amendment Description	Post-Effective Amendment No. 8
Entity Registrant Name	Shepherd’s Finance, LLC
Entity Central Index Key	0001544190
Entity Tax Identification Number	36-4608739
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	13241 Bartram Park Blvd.
Entity Address, Address Line Two	Suite 2401
Entity Address, City or Town	Jacksonville
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32258
City Area Code	302
Local Phone Number	752-2688
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	true
Business Contact [Member]
Entity Addresses [Line Items]
Entity Address, Address Line One	13241 Bartram Park Blvd.
Entity Address, Address Line Two	Suite 2401
Entity Address, City or Town	Jacksonville
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32258
City Area Code	302
Local Phone Number	752-2688
Contact Personnel Name	Daniel M. Wallach

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 3,735	$ 4,749
Accrued interest receivable	598	601
Loans receivable, net	46,943	46,405
Real estate investments	1,651	1,181
Foreclosed assets	2,724	4,449
Premises and equipment	875	903
Other assets	1,089	981
Total assets	57,615	59,269
Liabilities and Members’ Capital
Customer interest escrow	479	510
Accounts payable and accrued expenses	296	289
Accrued interest payable	2,464	3,158
Notes payable secured, net of deferred financing costs	20,016	22,959
Notes payable unsecured, net of deferred financing costs	27,713	26,978
PPP loan and EIDL advance		10
Due to preferred equity members	43	106
Total liabilities	51,011	54,010
Commitments and Contingencies (Note 11)
Redeemable Preferred Equity
Series C preferred equity	5,014	3,582
Series B preferred equity	1,720	1,630
Class A common (deficit) equity	(130)	47
Members’ capital	1,590	1,677
Total liabilities, redeemable preferred equity and members’ capital	$ 57,615	$ 59,269

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Net Interest Income
Interest and fee income on loans	$ 7,944	$ 8,209
Interest expense:
Interest related to secured borrowings	1,973	2,973
Interest related to unsecured borrowings	3,147	3,153
Interest expense	5,120	6,126
Net interest income	2,824	2,083
Less: Loan loss provision	588	1,805
Net interest income after loan loss provision	2,236	278
Non-Interest Income
Gain on sale of foreclosed assets	166	160
Gain on foreclosure of assets	67	52
Gain on the extinguishment of debt	371	361
Impairment gains on foreclosed assets		91
Total non-interest income	604	664
Income	2,840	942
Non-Interest Expense
Selling, general and administrative	1,873	2,185
Depreciation and amortization	53	85
Loss on the sale of foreclosed assets	92	102
Loss on foreclosure	47	54
Impairment loss on foreclosed assets	10	445
Total non-interest expense	2,075	2,871
Net income (loss)	765	(1,929)
Earned distribution to preferred equity holders	701	525
Net income (loss) attributable to common equity holders	$ 64	$ (2,454)

Consolidated Statements of Chan

Consolidated Statements of Changes in Member's Capital - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Members' capital, beginning balance	$ 1,677	$ 4,188
Net income (loss) less distributions to Series C preferred equity holders of $533 and $372	232	(2,301)
Contributions from Series B preferred equity holders	90	160
Earned distributions to Series B preferred equity holders	(168)	(153)
Distributions to common equity holders	(241)	(217)
Members' capital, ending balance	$ 1,590	$ 1,677

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Member's Capital (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Consolidated Statements Of Changes In Members Capital
Series C preferred equity holders	$ 533	$ 372

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operations
Net income (loss)	$ 765	$ (1,929)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Amortization of deferred financing costs	168	158
Provision for loan losses	588	1,805
Change in loan origination fees, net	99	87
Depreciation and amortization	53	85
Impairment of foreclosed assets, net	10	354
Gain on foreclosed assets	(67)	(52)
Gain on sale of foreclosed assets, net	(166)	(160)
Loss on foreclosed assets	47	54
Loss on sale of foreclosed assets	92	102
Gain on extinguishment of debt	(371)	(361)
Net change in operating assets and liabilities:
Other assets	(133)	(831)
Accrued interest receivable	3	430
Customer interest escrow	(262)	(217)
Accrued interest payable	716	1,422
Accounts payable and accrued expenses	7	(177)
Net cash provided by operating activities	1,549	770
Cash flows from investing activities
Loan originations and principal collections, net	(2,016)	3,814
Investment in foreclosed assets	(818)	(1,410)
Additions for construction in real estate investments	(670)	(41)
Deposits for construction in real estate investments	200
Proceeds from sale of foreclosed assets	3,418	3,697
Net cash provided by investing activities	114	6,060
Cash flows from financing activities
Contributions from preferred B equity holders	90	160
Contributions from preferred C equity holders	1,000	300
Distributions to redeemable preferred equity holders	(101)	(49)
Distributions to common equity holders	(241)	(217)
Proceeds from secured note payable	9,319	12,927
Repayments of secured note payable	(12,420)	(18,379)
Proceeds from unsecured notes payable	9,088	10,103
Redemptions/repayments of unsecured notes payable	(9,655)	(9,018)
Proceeds from PPP loan and EIDL advance	361	371
Deferred financing costs paid	(118)	(162)
Net cash used in financing activities	(2,677)	(3,964)
Net change in cash and cash equivalents	(1,014)	2,866
Cash and cash equivalents
Beginning of period	4,749	1,883
End of period	3,735	4,749
Supplemental disclosure of cash flow information
Cash paid for interest	5,814	5,501
Non-cash investing and financing activities
Earned by Series B preferred equity holders but not distributed to customer interest escrow	43	106
Earned by Series B preferred equity holders and distributed to customer interest escrow	231	83
Foreclosure of assets transferred from loans receivable, net	791	2,118
Earned but not paid distributions of Series C preferred equity holders	503	372
Secured and unsecured notes payable transfers	158	1,424
Accrued interest payable transferred to unsecured notes payable	1,410	797
Construction loans funded through the reduction of Secured LOC from affiliates	141
Transfer of loan receivables to real estate investments		1,140
PPP forgiveness in reduction of debt	$ 371	$ 361

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Description of Business	1. Description of Business Shepherd’s Finance, LLC and subsidiary (the “Company”, “we”, or “our”) was originally formed as a Pennsylvania limited liability company on May 10, 2007. We are the sole member of one consolidating subsidiary, Shepherd’s Stable Investments, LLC. The Company operates pursuant to its Second Amended and Restated Limited Liability Company Agreement by and among Daniel M. Wallach and the other members of the Company effective as of March 16, 2017, and as subsequently amended. The Company extends commercial loans to residential homebuilders (in 20 states as of December 31, 2021) to: ● construct single family homes, ● develop undeveloped land into residential building lots, and ● purchase and improve for sale older homes.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation These consolidated financial statements include the consolidated accounts of the Company’s subsidiary and reflect all adjustments (all of which are normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, operating results, and cash flows for the periods. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that market conditions could deteriorate, which could materially affect our consolidated financial position, results of operations and cash flows. Among other effects, such changes could result in the need to increase the amount of our allowance for loan losses and impair our foreclosed assets. Operating Segments Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic (“ASC”) 280, Segment Reporting Revenue Recognition Interest income generally is recognized on an accrual basis. The accrual of interest is generally discontinued on all loans past due 90 days or more. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management believes that the accrued interest is recoverable through liquidation of collateral. Interest received on nonaccrual loans is applied against principal. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Our construction loans charge a fee on the amount that we commit to lend, which is amortized over the expected life of each of those loans. The Company records revenue when control of the promised services is transferred to the customer, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services. Our performance obligations to customers are primarily satisfied over time as the services are performed and provided to the customer. Advertising Advertising costs are expensed as incurred and are included in selling, general and administrative. Advertising expenses were $ 65 85 Cash and Cash Equivalents Management considers highly-liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains its cash account in a deposit account which, at times, may exceed federally insured limits. The Company monitors this bank account and does not expect to incur any losses from such account. Fair Value Measurements The Company follows the guidance of FASB ASC 825, Financial Instruments Fair Value Measurements Loans Receivable Loans are stated at the amount of unpaid principal, net of any allowances for loan losses, and adjusted for (1) the net unrecognized portion of direct costs and nonrefundable loan fees associated with lending, and (2) deposits made by the borrowers used as collateral for a loan and due back to the builder at or prior to loan payoff. The net amount of nonrefundable loan origination fees and direct costs associated with the lending process, including commitment fees, is deferred and accreted to interest income over the lives of the loans using a method that approximates the interest method. A loan is classified as nonaccrual, and the accrual of interest on such loan is discontinued, when the contractual payment of principal or interest becomes 90 days past due. In addition, a loan may be placed on nonaccrual at any other time management has serious doubts about further collectability of principal or interest according to the contractual terms, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection or well-secured (i.e., the loan has sufficient collateral value). Loans are restored to accrual status when the obligation is brought current or has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Once a loan is 90 days past due, management begins a workout plan with the borrower or commences its foreclosure process on the collateral. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio. The Company establishes a collective reserve for all loans which are not more than 60 days past due at the end of each quarter. This collective reserve includes both a quantitative and qualitative analysis. In addition to historical loss information, the analysis incorporates collateral value, decisions made by management and staff, percentage of aging spec loans, policies, procedures, and economic conditions. The Company individually analyzes for impairment all loans which are more than 60 days past are due at the end of each quarter. We also review for impairment all loans to one borrower with greater than or equal to 10% of our total committed balances. If required, the analysis includes a comparison of estimated collateral value to the principal amount of the loan. Impaired loans, if the value determined is less than the principal amount due (less any builder deposit), then the difference is included in the allowance for loan loss. As values change, estimated loan losses may be provided for more or less than the previous period, and some loans may not need a loss provision based on payment history. As for homes which are partially complete, the Company will appraise on an as-is and completed basis, and use the appraised value that more closely aligns with our planned method of disposal for the property. Impaired Loans A loan is considered to be impaired when it is probable the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Foreclosed Assets When a foreclosed asset is acquired in the settlement of a loan, the asset is recorded at the as-is fair value minus expected selling costs establishing a new cost basis. The gain or loss is recorded on our consolidated statement of operations as non-interest income or expense. If the fair value of the asset declines, a write-down is recorded through non-interest expense. While the initial valuation is done on an as-is basis, subsequent values are based on our plan for the asset. Assets which are not going to be improved are still evaluated on an as-is basis. Assets we intend to improve, are improving, or have improved are appraised based on the to-be-completed value, minus reasonable selling costs, and we adjust the portion of the appraised value related to construction improvements for the percentage of the improvements which have not yet been made. Subsequently, if a foreclosed asset has an increase in fair value the increase may be recognized up to the cost basis which was determined at the foreclosure date. Deferred Financing Costs, Net Deferred financing costs consist of certain costs associated with financing activities related to the issuance of debt securities (deferred financing costs). These costs consist primarily of professional fees incurred related to the transactions. Deferred financing costs are amortized into interest expense over the life of the related debt. The deferred financing costs are reflected as a reduction in the unsecured notes offering liability. Income Taxes The entities included in the consolidated financial statements are organized as pass-through entities under the Internal Revenue Code. As such, taxes are the responsibility of the members. Other significant taxes for which the Company is liable are recorded on an accrual basis. The Company applies FASB ASC 740, Income Taxes The Company’s policy is to record interest and penalties related to taxes in interest expense on the consolidated statements of operations. There have been no significant interest or penalties assessed or paid. Reclassifications Certain reclassifications have been made to the prior period’s financial statements and disclosures to conform to the current period’s presentation. Risks and Uncertainties The Company is subject to many of the risks common to the commercial lending and real estate industries, such as general economic conditions, decreases in home values, decreases in housing starts, increases in interest rates, and competition from other lenders. At December 31, 2021, our loans were significantly concentrated in a suburb of Pittsburgh, Pennsylvania, so the housing starts and prices in that area are more significant to our business than other areas until and if more loans are created in other markets. Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of loans receivable. Our concentration risks for our top three customers listed by geographic real estate market are summarized in the table below: Summary of Concentration Risks December 31, 2021 December 31, 2020 Percent of Percent of Borrower Loan Borrower Loan City Commitments City Commitments Highest concentration risk Pittsburgh, PA 26 % Pittsburgh, PA 29 % Second highest concentration risk Orlando, FL 7 % Orlando, FL 12 % Third highest concentration risk Spokane, WA 4 % Cape Coral, FL 6 % Recent Accounting Pronouncements The FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ASU 2016-13, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value	3. Fair Value Utilizing ASC 820, the Company has established a framework for measuring fair value under U.S. GAAP using a hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value measurements are an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Three levels of inputs are used to measure fair value, as follows: Level 1 – quoted prices in active markets for identical assets or liabilities; Level 2 – quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or Level 3 – unobservable inputs, such as discounted cash flow models or valuations. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair Value Measurements of Non-Financial Instruments on a Recurring Basis The Company has no non-financial instruments measured at fair value on a recurring basis. Fair Value Measurements of Non-Financial Instruments on a Non-recurring Basis Certain assets are measured at fair value on a non-recurring basis when there is evidence of impairment. The fair values of impaired loans with specific allocations of the allowance for loan losses are generally based on recent real estate appraisals of the collateral less estimated cost to sell. Declines in the fair values of other real estate owned subsequent to their initial acquisitions are also based on recent real estate appraisals less selling costs. Impaired Loans The appraisals used to establish the value of impaired loans are based on similar properties at similar times; however due to the differences in time and properties, the impaired loans are classified as Level 3. There were 23 and 29 impaired loan assets as of December 31, 2021 and December 31, 2020, respectively Foreclosed Assets Foreclosed assets (upon initial recognition or subsequent impairment) are measured at fair value on a non-recurring basis. Foreclosed assets, upon initial recognition, are measured and reported at fair value less cost to sell. Each reporting period, the Company remeasures the fair value of its significant foreclosed assets. Fair value is based upon independent market prices, appraised values of the foreclosed assets or management’s estimates of value, which the Company classifies as a Level 3 evaluation. The following tables present the balances of non-financial instruments measured at fair value on a non-recurring basis as of December 31, 2021 and 2020: Schedule of Non-financial Instruments Measured at Fair Value on Non-recurring Basis Quoted Prices in Active Markets for Significant Other Significant December 31, 2021 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 2,724 $ 2,724 $ – $ – $ 2,724 Impaired loans due to COVID-19, net 5,129 5,129 – – 5,129 Other impaired loans, net 2,572 2,572 – – 2,572 Total $ 10,425 $ 10,425 $ – $ – $ 10,425 Quoted Prices in Active Markets for Significant Other Significant December 31, 2020 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 4,449 $ 4,449 $ – $ – $ 4,449 Impaired loans due to COVID-19, net 9,054 9,054 – – 9,054 Other impaired loans, net 1,064 1,064 – – 1,064 Total $ 14,567 $ 14,567 $ – $ – $ 14,567 Fair Value of Financial Instruments ASC 825 requires disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and Cash Equivalents The carrying amount approximates fair value because of the short maturity of these instruments. Loans Receivable and Commitments to Extend Credit For variable rate loans that reprice frequently with no significant change in credit risk, estimated fair values of collateral are based on carrying values at both December 31, 2021 and 2020. Because the loans are demand loan and therefore have no known time horizon, there is no significant impact from fluctuating interest rates. For unfunded commitments to extend credit, because there would be no adjustment between fair value and carrying amount for the amount if actually loaned, there is no adjustment to the amount before it is loaned. The amount for commitments to extend credit is not listed in the tables below because there is no difference between carrying value and fair value, and the amount is not recorded on the consolidated balance sheets as a liability. Interest Receivable Interest receivable from our customers is due approximately 15 days after it is billed; therefore, the carrying amount approximates fair value for the years ended December 31, 2021 and 2020. Customer Interest Escrow The customer interest escrow does not yield interest to the customer, but the fair value approximates the carrying value at both December 31, 2021 and 2020 because: 1) the customer loans are demand loans, 2) it is not possible to estimate how long the escrow will be in place, and 3) the interest rate which could be used to discount this amount is negligible. Borrowings under Credit Facilities The fair value of the Company’s borrowings under credit facilities is estimated based on the expected cash flows discounted using the current rates offered to the Company for debt of the same remaining maturities. As all of the borrowings under credit facilities or the Notes are either payable on demand or at similar rates to what the Company can borrow funds for today, the fair value of the borrowings is determined to approximate carrying value at both December 31, 2021 and 2020. The interest on our Notes offering is paid to our Note holders either monthly or at the end of their investment, compounded on a monthly basis. For the same reasons as the determination for the principal balances on the Notes, the fair value approximates the carrying value for the interest as well. The table below is a summary of fair value estimates for financial instruments: Schedule of Fair Value Estimates for Financial Instruments December 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial Assets Cash and cash equivalents $ 3,735 $ 3,735 $ 4,749 $ 4,749 Loans receivable, net 46,943 46,943 46,405 46,405 Accrued interest on loans 598 598 601 601 Financial Liabilities Customer interest escrow 479 479 510 510 Notes payable secured, net 20,016 20,016 22,959 22,959 Notes payable unsecured, net 27,713 27,713 26,978 26,978 Accrued interest payable 2,464 2,464 3,158 3,158

Real Estate Investment Assets

Real Estate Investment Assets	12 Months Ended
	Dec. 31, 2021
Real Estate [Abstract]
Real Estate Investment Assets	4. Real Estate Investment Assets During June 2020, the Company acquired two lots from a borrower in exchange for the transfer of loans secured by those lots. The Company extinguished the principal balance for the loans on the lots in the amount of $ 640 500 The following table is a roll forward of real estate investment assets: Schedule of Roll Forward of Real Estate Investment Assets December 31, 2021 December 31, 2020 Beginning balance $ 1,181 $ – Transfers from loans – 1,140 Deposits from real estate investments (200 ) – Additions for construction/development 670 41 Ending balance $ 1,651 $ 1,181

Financing Receivables

Financing Receivables	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Financing Receivables	5. Financing Receivables Financing receivables are comprised of the following as of December 31, 2021 and 2020: Schedule of Financing Receivables December 31, 2021 December 31, 2020 Loans receivable, gross $ 50,763 $ 50,449 Less: Deferred loan fees (1,143 ) (1,092 ) Less: Deposits (934 ) (1,337 ) Plus: Deferred origination costs 305 353 Less: Allowance for loan losses (2,048 ) (1,968 ) Loans receivable, net $ 46,943 $ 46,405 The allowance for loan losses at December 31, 2021 was $ 2,048 163 342 60 1,483 509 The allowance for loan losses at December 31, 2020 was $ 1,968 151 1,532 120 165 72 Commercial Construction and Development Loans Construction Loan Portfolio Summary As of December 31, 2021, we have 66 borrowers, all of whom borrow money for the purpose of building new homes. The loans typically involve funding of the lot and a portion of construction costs, for a total of between 50 70 3 5 10.91 13.91 The following is a summary of the loan portfolio to builders for home construction loans as of December 31, 2021 and 2020: Schedule of Commercial Loans - Construction Loan Portfolio Summary Year Number of States Number of Borrowers Number of Loans Value of Collateral (1) Commitment Amount Gross Amount Outstanding Loan to Value Ratio (2) Loan Fee 2021 20 66 224 $ 98,935 $ 66,008 $ 43,106 67 % (3) 5 % 2020 21 67 213 $ 86,268 $ 61,714 $ 42,219 72 % 5 % (1) The value is determined by the appraised value. (2) The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value. (3) Represents the weighted average loan to value ratio of the loans. Real Estate Development Loan Portfolio Summary The following is a summary of our loan portfolio to builders for land development as of December 31, 2021 and 2020: Schedule of Commercial Loans - Real Estate Development Loan Portfolio Summary Year Number of States Number of Borrowers Number of Loans Gross Value of Collateral (1) Commitment Amount (3) Gross Amount Outstanding Loan to Value Ratio (2) Interest Spread 2021 6 12 15 $ 12,464 $ 9,095 $ 7,657 61 % (4) varies 2020 5 8 9 $ 11,628 $ 10,815 $ 8,230 71 % 7 % (1) The value is determined by the appraised value adjusted for remaining costs to be paid. A portion of this collateral is $ 1,720 1,630 (2) The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above. (3) The commitment amount does not include letters of credit and cash bonds. (4) Represents the weighted average loan to value ratio of the loans. Credit Quality Information The following table presents credit-related information at the “class” level in accordance with FASB ASC 310-10-50, Disclosures about the Credit Quality of Finance Receivables and the Allowance for Credit Losses The following table summarizes finance receivables by the risk ratings that regulatory agencies utilize to classify credit exposure and which are consistent with indicators the Company monitors. Risk ratings are reviewed on a regular basis and are adjusted as necessary for updated information affecting the borrowers’ ability to fulfill their obligations. The definitions of these ratings are as follows: ● Pass – finance receivables in this category do not meet the criteria for classification in one of the categories below. ● Special mention – a special mention asset exhibits potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects. ● Classified – a classified asset ranges from: 1) assets that are inadequately protected by the current sound worth and paying capacity of the borrower, and are characterized by the distinct possibility that some loss will be sustained if the deficiencies are not corrected to 2) assets with weaknesses that make collection or liquidation in full unlikely on the basis of current facts, conditions, and values. Assets in this classification can be accruing or on non-accrual depending on the evaluation of these factors. Finance Receivables – By risk rating: Summary of Finance Receivables by Classification December 31, 2021 December 31, 2020 Pass $ 38,893 $ 35,544 Special mention 2,344 3,089 Classified – accruing – – Classified – nonaccrual 9,526 11,816 Total $ 50,763 $ 50,449 Finance Receivables – Method of impairment calculation: Schedule of Finance Receivables Impairment Calculation Method December 31, 2021 December 31, 2020 Performing loans evaluated individually $ 16,495 $ 16,412 Performing loans evaluated collectively 24,742 22,221 Non-performing loans without a specific reserve 596 1,518 Non-performing loans with a specific reserve 8,930 10,298 Total evaluated collectively for loan losses $ 50,763 $ 50,449 At December 31, 2021 and 2020, there were no loans acquired with deteriorated credit quality. The following is a summary of our impaired non-accrual commercial construction loans as of December 31, 2021 and 2020: Schedule of Impaired Loans December 31, 2021 December 31, 2020 Unpaid principal balance (contractual obligation from customer) $ 10,035 $ 11,888 Charge-offs and payments applied (509 ) (72 ) Gross value before related allowance 9,526 11,816 Related allowance (1,825 ) (1,698 ) Value after allowance $ 7,701 $ 10,118

Foreclosed Assets

Foreclosed Assets	12 Months Ended
	Dec. 31, 2021
Foreclosed Assets
Foreclosed Assets	6. Foreclosed Assets Roll forward of foreclosed assets for the years ended December 31, 2021 and 2020: Schedule of Roll Forward of Foreclosed Assets December 31, 2021 December 31, 2020 Beginning balance $ 4,449 $ 4,916 Additions from loans 791 2,118 Additions for construction/development 818 1,410 Sale proceeds (3,418 ) (3,697 ) Loss on foreclosure (47 ) (54 ) Loss on sale of foreclosed assets (92 ) (102 ) Gain on foreclosure 67 52 Gain on sale of foreclosed assets 166 160 Impairment loss on foreclosed assets (10 ) (290 ) Impairment loss on foreclosed assets due to COVID-19 - (64 ) Ending balance $ 2,724 $ 4,449

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Borrowings	7. Borrowings The following table displays our borrowings and a ranking of priority: Schedule of Borrowings Priority Rank December 31, 2021 December 31, Borrowing Source Purchase and sale agreements and other secured borrowings 1 $ 19,165 $ 22,968 Secured line of credit from affiliates 2 859 - Unsecured line of credit (senior) 3 1,250 500 EIDL advance 3 - 10 Other unsecured debt (senior subordinated) 4 1,053 1,800 Unsecured Notes through our public offering, gross 5 20,636 21,482 Other unsecured debt (subordinated) 5 4,693 2,747 Other unsecured debt (junior subordinated) 6 447 864 Total $ 48,103 $ 50,371 The following table shows the maturity of outstanding debt as of December 31, 2021: Schedule of Maturities of Debt Year Maturing Total Amount Maturing Public Offering Other Unsecured Secured Borrowings 2022 $ 28,238 $ 7,074 $ 1,945 $ 19,219 2023 5,060 3,475 1,514 71 2024 8,716 5,002 3,587 127 2025 5,565 5,085 398 82 2026 and thereafter 524 - - 524 Total $ 48,103 $ 20,636 $ 7,444 $ 20,023 Secured Borrowings Loan Purchase and Sale Agreements We have two loan purchase and sale agreements where we are the seller of portions of loans we create. The two purchasers are Builder Finance, Inc. (“Builder Finance”) and S.K. Funding, LLC (“S.K. Funding”). Generally, the purchasers buy between 50 75 6 11 In March 2018, we entered into the Seventh Amendment (the “Seventh Amendment”) to our Loan Purchase and Sale Agreement with S.K. Funding. The purpose of the Seventh Amendment was to allow S.K. Funding to purchase a portion of the Pennsylvania Loans. The timing of the Company’s principal and interest payments to S.K. Funding under the Seventh Amendment, and S.K. Funding’s obligation to fund the Pennsylvania Loans, vary depending on the total principal amount of the Pennsylvania Loans outstanding at any time, as follows: ● If the total principal amount exceeds $1,000, S.K. Funding must fund the amount between $1,000 and less than or equal to $4,500. ● If the total principal amount is less than $4,500, then the Company will also repay S.K. Funding’s principal as principal payments are received on the Pennsylvania Loans from the underlying borrowers in the amount by which the total principal amount is less than $4,500 until S.K. Funding’s principal has been repaid in full. ● The interest rate accruing to S.K. Funding under the Seventh Amendment is 10.5 The Seventh Amendment had a term of 24 months and automatically renews for additional six-month terms unless either party gives written notice of its intent not to renew at least six months prior to the end of a term. S.K. Funding will have a priority position as compared to the Company in the case of a default by any of the borrowers. In April 2021, we entered into the Eleventh Amendment (the “Eleventh Amendment”) to our Loan Purchase and Sale Agreement with S.K. Funding. The purpose of the Eleventh Amendment was to allow a principal increase to $ 2,000 1,000 400 2,000 The Eleventh Amendment has a term of 12 months and will automatically renew for an additional six-month term unless either party gives written notice of its intent not to renew at least five months prior to the end of a term. S.K. Funding will have a priority position as compared to the Company in the case of a default by any of the borrowers. Lines of Credit Lines of Credit with Mr. Wallach and His Affiliates During June 2018, we entered into the First Amendment to the line of credit with our Chief Executive Officer and his wife (the “Wallach LOC”) which modified the interest rate on the Wallach LOC to generally equal the prime rate plus 3 6.25 0 1,250 During June 2018, we also entered into the First Amendment to the line of credit with the 2007 Daniel M. Wallach Legacy Trust, which is our CEO’s trust (the “Wallach Trust LOC”) which modified the interest rate on the Wallach Trust LOC to generally equal the prime rate plus 3 6.25 250 Line of Credit with William Myrick During June 2018, we entered into a line of credit agreement (the “Myrick LOC Agreement”) with our Executive Vice President (“EVP”), William Myrick. Pursuant to the Myrick LOC Agreement, Mr. Myrick provides us with a line of credit (the “Myrick LOC”) with the following terms: ● Principal not to exceed $ 1,000 ● Secured by a lien against all of our assets; ● Cost of funds to us of prime rate plus 3 ● Due upon demand. As of December 31, 2021 and 2020, the amount outstanding pursuant to the Myrick LOC was $ 859 0 6 19 Line of Credit with Shuman During July 2017, we entered into a line of credit agreement (the “Shuman LOC Agreement”) with Steven K. Shuman, which is now held by Cindy K. Shuman. Pursuant to the Shuman LOC Agreement, Shuman provides us with a revolving line of credit (the “Shuman LOC”) with the following terms: ● Principal not to exceed $ 1,325 ● Secured with assignments of certain notes and mortgages; ● Cost of funds to us of 10 ● Due in July 2022, but will automatically renew for additional 12-month periods, unless either party gives notice to not renew. As of December 31, 2021 and 2020, the amount outstanding pursuant to the Shuman LOC was $ 125 1,325 77 135 During December 2021, the full Swanson LOC was assigned to Judith Swanson, a trustee of the 2021 Income Trust. Line of Credit with Swanson During December 2018, we entered into a Master Loan Modification Agreement (the “Swanson Modification Agreement”) with Paul Swanson which modified the line of credit agreement between us and Mr. Swanson dated October 23, 2017. Pursuant to the Swanson Modification Agreement, Mr. Swanson provides us with a revolving line of credit (the “Swanson LOC”) with the following terms: ● Principal not to exceed $ 7,000 ● Secured with assignments of certain notes and mortgages; ● Cost of funds to us of 6 ● Due in July 2022, but will automatically renew for additional 12-month periods The Swanson LOC was fully borrowed as of December 31, 2021 and 2020. Interest expense was $ 619 709 During December 2021, the full Swanson LOC was assigned to Judith Swanson, as trustee of a trust. New Lines of Credit During 2020 and 2019, we entered into five line of credit agreements (the “New LOC Agreements”). Pursuant to the New LOC Agreements, the lenders provide us with revolving lines of credit with the following terms: ● Principal not to exceed $ 6,063 ● Secured with assignments of certain notes and mortgages; and ● Terms generally allow the lenders to give one month notice after which the principal balance of a New LOC Agreement will reduce to a zero over the next six months. The total balance of the New LOC Agreements was $ 2,909 4,159 262 341 Mortgage Payable During January 2018, we entered into a commercial mortgage on our office building with the following terms: ● Principal not to exceed $ 660 ● Interest rate at 5.07 ● Due in January 2033 The principal amount of the Company’s commercial mortgage was $ 604 619 32 33 Community Loan During June 2020, we entered into a business loan agreement with Community Bank (“Community Loan”) with the following terms: ● Principal not to exceed $ 362 ● First principal payment due July 2023; ● Secured by certain of our foreclosed assets; ● Interest rate at 3.8 ● Due in July 2025 The principal amount for the Community Loan was $ 217 362 11 8 Secured Deferred Financing Costs The Company had secured deferred financing costs of $ 7 8 Secured Borrowings Secured by Loan Assets Borrowings secured by loan assets are summarized below: Schedule of Secured Borrowings December 31, 2021 December 31, 2020 Book Value of Loans which Served as Collateral Due from Shepherd’s Finance to Loan Purchaser or Lender Book Value of Loans which Served as Collateral Due from Shepherd’s Finance to Loan Purchaser or Lender Loan Purchaser Builder Finance $ 4,847 $ 2,969 $ 7,981 $ 5,919 S.K. Funding 8,084 5,500 4,551 3,898 Lender Shuman 566 125 1,916 1,325 Jeff Eppinger 3,328 1,500 2,206 1,500 Hardy Enterprises, Inc. - - 1,590 1,000 Gary Zentner - - 424 250 R. Scott Summers 1,475 847 1,259 847 John C. Solomon 1,139 563 743 563 Swanson 9,803 6,841 9,381 6,685 Total $ 29,242 $ 18,345 $ 30,051 $ 21,987 Unsecured Borrowings Unsecured Notes through the Public Offering (“Notes Program”) The effective interest rate on borrowings through our Notes Program at December 31, 2021 and 2020 was 9.28 10.38 Schedule of Roll Forward of Notes Outstanding December 31, 2021 December 31, 2020 Gross notes outstanding, beginning of period $ 21,482 $ 20,308 Notes issued 7,876 7,691 Note repayments / redemptions (8,722 ) (6,517 ) Gross Notes outstanding, end of period 20,636 21,482 Less deferred financing costs, net (367 ) (416 ) Notes outstanding, net $ 20,269 $ 21,066 The following is a roll forward of deferred financing costs: Schedule of Roll Forward of Deferred Financing Costs December 31, 2021 December 31, 2020 Deferred financing costs, beginning balance $ 942 $ 786 Additions 119 156 Deferred financing costs, ending balance $ 1,061 $ 942 Less accumulated amortization (694 ) (526 ) Deferred financing costs, net $ 367 $ 416 The following is a roll forward of the accumulated amortization of deferred financing costs: Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs December 31, 2021 December 31, 2020 Accumulated amortization, beginning balance $ 526 $ 370 Additions 168 165 Disposals - (9 ) Accumulated amortization, ending balance $ 694 $ 526 Other Unsecured Debts Our other unsecured debts are detailed below: Schedule of Other Unsecured Loans Principal Amount Outstanding as of Loan Maturity Date Interest Rate (1) December 31, 2021 December 31, 2020 Unsecured Note with Seven Kings Holdings, Inc. Demand (2) 9.5 % $ 500 $ 500 Unsecured Line of Credit from Swanson July 2022 6.0 % 159 315 Unsecured Line of Credit from Builder Finance, Inc. January 2023 10.0 % 750 - Subordinated Promissory Note December 2021 10.5 % - 146 Subordinated Promissory Note April 2024 10.0 % 100 100 Subordinated Promissory Note April 2021 10.0 % - 174 Subordinated Promissory Note August 2022 11.0 % 200 200 Subordinated Promissory Note March 2023 11.0 % - 169 Subordinated Promissory Note February 2023 10.0 % 600 - Subordinated Promissory Note June 2023 10.0 % 400 - Subordinated Promissory Note February 2021 11.0 % - 600 Subordinated Promissory Note Demand 5.0 % - - Subordinated Promissory Note December 2022 5.0 % 3 3 Subordinated Promissory Note December 2023 11.0 % 20 20 Subordinated Promissory Note February 2024 11.0 % 20 20 Subordinated Promissory Note January 2025 10.0 % 15 - Subordinated Promissory Note November 2021 9.5 % - 200 Subordinated Promissory Note November 2023 9.5 % 200 - Subordinated Promissory Note October 2024 10.0 % 700 700 Subordinated Promissory Note December 2024 10 % 100 100 Subordinated Promissory Note April 2025 10.0 % 202 - Subordinated Promissory Note July 2023 8.0 % 100 - Subordinated Promissory Note July 2024 5.0 % 1,500 - Subordinated Promissory Note September 2023 7.0 % 94 - Subordinated Promissory Note October 2023 7.0 % 100 - Subordinated Promissory Note December 2025 8.0 % 180 - Senior Subordinated Promissory Note March 2022 (3) 10.0 % 334 352 Senior Subordinated Promissory Note March 2022 (4) 1.0 % - 728 Junior Subordinated Promissory Note March 2022 (4) 22.5 % - 417 Senior Subordinated Promissory Note October 2024 (5) 1.0 % 720 720 Junior Subordinated Promissory Note October 2024 (5) 20.0 % 447 447 $ 7,444 $ 5,911 (1) Interest rate per annum, based upon actual days outstanding and a 365/366-day year. (2) Due six months after lender gives notice. (3) Lender may require us to repay $ 20 (4) These notes were issued to the same holder and, when calculated together, yield a blended rate of 11 (5) These notes were issued to the same holder and, when calculated together, yield a blended rate of 10 During February 2021, we borrowed approximately $ 361 In August 2021, the full principal amount of the PPP loan or $ 361 During April 2020, the Company received a grant under the Economic Injury Disaster Loan Emergency Advance (the “EIDL Advance”) of $ 10 In February 2021, the full EIDL Advance of $ 10 In May 2020, we borrowed approximately $ 361 In November 2020, the full principal amount of the PPP loan or $ 361

Redeemable Preferred Equity

Redeemable Preferred Equity	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Redeemable Preferred Equity	8. Redeemable Preferred Equity Series C cumulative preferred units (“Series C Preferred Units”) are redeemable by the Company at any time, upon a change of control or liquidation, or by the investor any time after 6 years from the initial date of purchase. T he Series C Preferred Units have a fixed value which is their purchase price and preferred liquidation and distribution rights. Yearly distributions of 12% of the Series C Preferred Units’ value (provided profits are available) will be made on a quarterly basis. This rate may increase if any interest rate on our public Notes offering rises above 12%. Dividends may be reinvested monthly into additional Series C Preferred Units. Roll forward of redeemable preferred equity: Schedule of Roll Forward of Redeemable Preferred Equity December 31, 2021 December 31, 2020 Beginning balance $ 3,582 $ 2,959 Additions from new investment 1,000 300 Distributions (101 ) (49 ) Additions from reinvestment 533 372 Ending balance $ 5,014 $ 3,582 The following table shows the earliest redemption options for investors in Series C Preferred Units as of December 31, 2021: Schedule of Redemption Option for Investors Year Maturing Total Amount Redeemable 2024 $ 3,244 2025 402 2026 309 2027 1,059 Total $ 5,014

Members_ Capital

Members’ Capital	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Members’ Capital	9. Members’ Capital There are currently two classes of equity units outstanding that the Company classifies as Members’ Capital: Class A common units (“Class A Common Units”) and Series B cumulative preferred units (“Series B Preferred Units”). As of December 31, 2021, the Class A Common Units are held by eight members, all of whom have no personal liability. All Class A common members have voting rights in proportion to their capital account. There were 2,629 The Series B Preferred Units were issued to the Hoskins Group through a reduction in a loan issued by the Hoskins Group to the Company. In December 2015, the Hoskins Group agreed to purchase 0.1 Series B Preferred Units for $ 10 17.2 16.3 1,720 1,630 Both the Series B Preferred Units and the Series C Preferred Units have the same basic preferential status as compared to the Class A Common Units, and are pari passu with each other. Both Preferred Unit types include a liquidation preference and a dividend preference, as well as a 12-month recovery period for a shortfall in earnings. There are two additional authorized unit classes: Class A preferred units and Class B profit units. Once Class B profit units are issued, the existing Class A common units will become Class A preferred units. Class A Preferred units will receive preferred treatment in terms of distributions and liquidation proceeds.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	10. 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 The Company has a loan agreement with William Myrick, our EVP (the “Myrick LOC Agreement”), pursuant to which Mr. Myrick provides us with the Myrick LOC. The Myrick LOC Agreement lays out the terms under which Mr. Myrick can lend money to us, providing that we desire the funds and Mr. Myrick wish to lend. The rate on the Myrick LOC generally equals prime plus 3 Two of our managers each own 1 2 15.3 Mr. Wallach and his wife’s parents own 18.05 and 1.45 of our Series C Preferred Units, respectively. One of our managers, Gregory L. Sheldon, owns 6.31 of our Series C Preferred Units The Company has a Senior Subordinated Promissory Note with the parents of Mr. Wallach for $ 333 10 20 A son of one of our Managers is a minor participant in the Shuman LOC, which is more fully described in Note 7. In addition, Mr. Summers’ son is a lender to the Company pursuant to a New LOC Agreement, with principal not to exceed $ 2,000 In September 2018, the Company sold three 281 104 177 In June 2019, two of the loans owned by Mr. Wallach paid off for approximately $ 375 two 286 254 In July 2020, the Company purchased two 198 In September 2018, we sold two 394 94 300 In addition, during 2019 Mr. Myrick purchased two 456 254 245 765 During 2021, Mr. Myrick purchased two 141 During 2021, one of our managers purchased one 405 The Hoskins Group has a preferred equity interest in the Company. In addition, the Company has issued Series B Preferred Units to the Hoskins Group, as more fully described in Note 9 – The Company has accepted investments under the Notes Program from employees, managers, members, and relatives of managers and members, with $ 3,989 120 Schedule of Related Party Transactions 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 2021 2020 2021 2021 2020 Eric A. Rauscher Independent Manager $ 475 $ 475 10.00 % $ 36 $ 47 Capture HD Inc., Defined Benefit Plan & Trust Sponsor is Brother of Employee 1,000 1,000 11.00 % 149 142 David Wallach Living Trust Father of Member 571 577 10.23 % 58 60 Gregory L. Sheldon Independent Manager 577 1,053 10.22 % 59 112 Joseph Rauscher Parent of Independent Manager 195 195 11.00 % 21 14 Kenneth Summers Independent Manager 100 189 4.00 % 1 20 Schultz Family Revocable Living Trust Trustee is Mother-in-Law of Member 148 132 9.88 % 15 14 Kimberly Bedford Employee 148 160 10.88 % 16 16 Lamar Sheldon Parent of Independent Manager 253 217 9.03 % 23 21

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies In the normal course of business there may be outstanding commitments to extend credit that are not included in the consolidated financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon and some of the funding may come from the earlier repayment of the same loan (in the case of revolving lines), the total commitment amounts do not necessarily represent future cash requirements. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the consolidated financial statements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. Unfunded commitments to extend credit, which have similar collateral, credit risk and market risk to our outstanding loans, were $ 22,902 19,495

Selected Quarterly Condensed Co

Selected Quarterly Condensed Consolidated Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Condensed Consolidated Financial Data (Unaudited)	12. Selected Quarterly Condensed Consolidated Financial Data (Unaudited) Summarized unaudited quarterly condensed consolidated financial data for the quarters of 2021 and 2020 are as follows: Selected Quarterly Condensed Consolidated Financial Data Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 Quarter 3 Quarter 2 (1) Quarter 1 2021 2021 2021 2021 2020 2020 2020 2020 Net interest income (loss) $ 958 $ 830 $ 625 $ 411 $ 932 $ 389 $ (228 ) $ 990 Loan loss provision 246 83 45 214 140 70 1,560 35 Net interest income (loss) after loan loss provision 712 747 580 197 792 319 (1,788 ) 955 Gain on sale of foreclosed assets 1 64 13 88 22 135 3 – Gain on foreclosure of assets 67 – – – 52 – – – Impairment gains on foreclosed assets – – – – (4 ) 95 – – Gain on extinguishment of debt – 361 – 10 361 – – – SG&A expense 415 483 438 537 648 367 462 708 Depreciation and amortization 12 12 13 16 22 21 21 21 Loss on sale of foreclosed assets 23 – 51 18 16 51 – 35 Loss on foreclosure of assets 47 – – – 52 2 – – Impairment loss on foreclosed assets – – – 10 241 4 91 109 Net income (loss) $ 283 $ 677 $ 91 $ (286 ) $ 244 $ 104 $ (2,359 ) $ 82 (1) During the quarter ended June 30, 2020, net interest income after loan loss provision was reduced due to COVID-19 by $ 1,492 469 91

Non-Interest Expense Detail

Non-Interest Expense Detail	12 Months Ended
	Dec. 31, 2021
Non-interest Expense Detail
Non-Interest Expense Detail	13. Non-Interest Expense Detail The following table displays our selling, general and administrative expenses for the years ended December 31, 2021 and 2020: Schedule of Selling General and Administrative Expenses 2021 2020 Selling, general and administrative expenses Legal and accounting $ 166 $ 224 Salaries and related expenses 819 975 Board related expenses 99 99 Advertising 65 85 Rent and utilities 53 52 Loan and foreclosed asset expenses 348 498 Travel 154 140 Other 169 112 Total SG&A $ 1,873 $ 2,185

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	14. Subsequent Events Management of the Company has evaluated subsequent events through March 10, 2022, the date these consolidated financial statements were issued.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation These consolidated financial statements include the consolidated accounts of the Company’s subsidiary and reflect all adjustments (all of which are normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, operating results, and cash flows for the periods. All intercompany balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that market conditions could deteriorate, which could materially affect our consolidated financial position, results of operations and cash flows. Among other effects, such changes could result in the need to increase the amount of our allowance for loan losses and impair our foreclosed assets.
Operating Segments	Operating Segments Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic (“ASC”) 280, Segment Reporting
Revenue Recognition	Revenue Recognition Interest income generally is recognized on an accrual basis. The accrual of interest is generally discontinued on all loans past due 90 days or more. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management believes that the accrued interest is recoverable through liquidation of collateral. Interest received on nonaccrual loans is applied against principal. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Our construction loans charge a fee on the amount that we commit to lend, which is amortized over the expected life of each of those loans. The Company records revenue when control of the promised services is transferred to the customer, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services. Our performance obligations to customers are primarily satisfied over time as the services are performed and provided to the customer.
Advertising	Advertising Advertising costs are expensed as incurred and are included in selling, general and administrative. Advertising expenses were $ 65 85
Cash and Cash Equivalents	Cash and Cash Equivalents Management considers highly-liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains its cash account in a deposit account which, at times, may exceed federally insured limits. The Company monitors this bank account and does not expect to incur any losses from such account.
Fair Value Measurements	Fair Value Measurements The Company follows the guidance of FASB ASC 825, Financial Instruments Fair Value Measurements
Loans Receivable	Loans Receivable Loans are stated at the amount of unpaid principal, net of any allowances for loan losses, and adjusted for (1) the net unrecognized portion of direct costs and nonrefundable loan fees associated with lending, and (2) deposits made by the borrowers used as collateral for a loan and due back to the builder at or prior to loan payoff. The net amount of nonrefundable loan origination fees and direct costs associated with the lending process, including commitment fees, is deferred and accreted to interest income over the lives of the loans using a method that approximates the interest method. A loan is classified as nonaccrual, and the accrual of interest on such loan is discontinued, when the contractual payment of principal or interest becomes 90 days past due. In addition, a loan may be placed on nonaccrual at any other time management has serious doubts about further collectability of principal or interest according to the contractual terms, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection or well-secured (i.e., the loan has sufficient collateral value). Loans are restored to accrual status when the obligation is brought current or has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Once a loan is 90 days past due, management begins a workout plan with the borrower or commences its foreclosure process on the collateral.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio. The Company establishes a collective reserve for all loans which are not more than 60 days past due at the end of each quarter. This collective reserve includes both a quantitative and qualitative analysis. In addition to historical loss information, the analysis incorporates collateral value, decisions made by management and staff, percentage of aging spec loans, policies, procedures, and economic conditions. The Company individually analyzes for impairment all loans which are more than 60 days past are due at the end of each quarter. We also review for impairment all loans to one borrower with greater than or equal to 10% of our total committed balances. If required, the analysis includes a comparison of estimated collateral value to the principal amount of the loan. Impaired loans, if the value determined is less than the principal amount due (less any builder deposit), then the difference is included in the allowance for loan loss. As values change, estimated loan losses may be provided for more or less than the previous period, and some loans may not need a loss provision based on payment history. As for homes which are partially complete, the Company will appraise on an as-is and completed basis, and use the appraised value that more closely aligns with our planned method of disposal for the property.
Impaired Loans	Impaired Loans A loan is considered to be impaired when it is probable the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement.
Foreclosed Assets	Foreclosed Assets When a foreclosed asset is acquired in the settlement of a loan, the asset is recorded at the as-is fair value minus expected selling costs establishing a new cost basis. The gain or loss is recorded on our consolidated statement of operations as non-interest income or expense. If the fair value of the asset declines, a write-down is recorded through non-interest expense. While the initial valuation is done on an as-is basis, subsequent values are based on our plan for the asset. Assets which are not going to be improved are still evaluated on an as-is basis. Assets we intend to improve, are improving, or have improved are appraised based on the to-be-completed value, minus reasonable selling costs, and we adjust the portion of the appraised value related to construction improvements for the percentage of the improvements which have not yet been made. Subsequently, if a foreclosed asset has an increase in fair value the increase may be recognized up to the cost basis which was determined at the foreclosure date.
Deferred Financing Costs, Net	Deferred Financing Costs, Net Deferred financing costs consist of certain costs associated with financing activities related to the issuance of debt securities (deferred financing costs). These costs consist primarily of professional fees incurred related to the transactions. Deferred financing costs are amortized into interest expense over the life of the related debt. The deferred financing costs are reflected as a reduction in the unsecured notes offering liability.
Income Taxes	Income Taxes The entities included in the consolidated financial statements are organized as pass-through entities under the Internal Revenue Code. As such, taxes are the responsibility of the members. Other significant taxes for which the Company is liable are recorded on an accrual basis. The Company applies FASB ASC 740, Income Taxes The Company’s policy is to record interest and penalties related to taxes in interest expense on the consolidated statements of operations. There have been no significant interest or penalties assessed or paid.
Reclassifications	Reclassifications Certain reclassifications have been made to the prior period’s financial statements and disclosures to conform to the current period’s presentation.
Risks and Uncertainties	Risks and Uncertainties The Company is subject to many of the risks common to the commercial lending and real estate industries, such as general economic conditions, decreases in home values, decreases in housing starts, increases in interest rates, and competition from other lenders. At December 31, 2021, our loans were significantly concentrated in a suburb of Pittsburgh, Pennsylvania, so the housing starts and prices in that area are more significant to our business than other areas until and if more loans are created in other markets.
Concentrations	Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of loans receivable. Our concentration risks for our top three customers listed by geographic real estate market are summarized in the table below: Summary of Concentration Risks December 31, 2021 December 31, 2020 Percent of Percent of Borrower Loan Borrower Loan City Commitments City Commitments Highest concentration risk Pittsburgh, PA 26 % Pittsburgh, PA 29 % Second highest concentration risk Orlando, FL 7 % Orlando, FL 12 % Third highest concentration risk Spokane, WA 4 % Cape Coral, FL 6 %
Recent Accounting Pronouncements	Recent Accounting Pronouncements The FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ASU 2016-13, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Summary of Concentration Risks	Summary of Concentration Risks December 31, 2021 December 31, 2020 Percent of Percent of Borrower Loan Borrower Loan City Commitments City Commitments Highest concentration risk Pittsburgh, PA 26 % Pittsburgh, PA 29 % Second highest concentration risk Orlando, FL 7 % Orlando, FL 12 % Third highest concentration risk Spokane, WA 4 % Cape Coral, FL 6 %

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Non-financial Instruments Measured at Fair Value on Non-recurring Basis	The following tables present the balances of non-financial instruments measured at fair value on a non-recurring basis as of December 31, 2021 and 2020: Schedule of Non-financial Instruments Measured at Fair Value on Non-recurring Basis Quoted Prices in Active Markets for Significant Other Significant December 31, 2021 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 2,724 $ 2,724 $ – $ – $ 2,724 Impaired loans due to COVID-19, net 5,129 5,129 – – 5,129 Other impaired loans, net 2,572 2,572 – – 2,572 Total $ 10,425 $ 10,425 $ – $ – $ 10,425 Quoted Prices in Active Markets for Significant Other Significant December 31, 2020 Identical Observable Unobservable Carrying Estimated Assets Inputs Inputs Amount Fair Value Level 1 Level 2 Level 3 Foreclosed assets $ 4,449 $ 4,449 $ – $ – $ 4,449 Impaired loans due to COVID-19, net 9,054 9,054 – – 9,054 Other impaired loans, net 1,064 1,064 – – 1,064 Total $ 14,567 $ 14,567 $ – $ – $ 14,567
Schedule of Fair Value Estimates for Financial Instruments	The table below is a summary of fair value estimates for financial instruments: Schedule of Fair Value Estimates for Financial Instruments December 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial Assets Cash and cash equivalents $ 3,735 $ 3,735 $ 4,749 $ 4,749 Loans receivable, net 46,943 46,943 46,405 46,405 Accrued interest on loans 598 598 601 601 Financial Liabilities Customer interest escrow 479 479 510 510 Notes payable secured, net 20,016 20,016 22,959 22,959 Notes payable unsecured, net 27,713 27,713 26,978 26,978 Accrued interest payable 2,464 2,464 3,158 3,158

Real Estate Investment Assets (

Real Estate Investment Assets (Tables)	12 Months Ended
	Dec. 31, 2021
Real Estate [Abstract]
Schedule of Roll Forward of Real Estate Investment Assets	The following table is a roll forward of real estate investment assets: Schedule of Roll Forward of Real Estate Investment Assets December 31, 2021 December 31, 2020 Beginning balance $ 1,181 $ – Transfers from loans – 1,140 Deposits from real estate investments (200 ) – Additions for construction/development 670 41 Ending balance $ 1,651 $ 1,181

Financing Receivables (Tables)

Financing Receivables (Tables)	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Schedule of Financing Receivables	Financing receivables are comprised of the following as of December 31, 2021 and 2020: Schedule of Financing Receivables December 31, 2021 December 31, 2020 Loans receivable, gross $ 50,763 $ 50,449 Less: Deferred loan fees (1,143 ) (1,092 ) Less: Deposits (934 ) (1,337 ) Plus: Deferred origination costs 305 353 Less: Allowance for loan losses (2,048 ) (1,968 ) Loans receivable, net $ 46,943 $ 46,405
Schedule of Commercial Loans - Construction Loan Portfolio Summary	The following is a summary of the loan portfolio to builders for home construction loans as of December 31, 2021 and 2020: Schedule of Commercial Loans - Construction Loan Portfolio Summary Year Number of States Number of Borrowers Number of Loans Value of Collateral (1) Commitment Amount Gross Amount Outstanding Loan to Value Ratio (2) Loan Fee 2021 20 66 224 $ 98,935 $ 66,008 $ 43,106 67 % (3) 5 % 2020 21 67 213 $ 86,268 $ 61,714 $ 42,219 72 % 5 % (1) The value is determined by the appraised value. (2) The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value. (3) Represents the weighted average loan to value ratio of the loans.
Schedule of Commercial Loans - Real Estate Development Loan Portfolio Summary	The following is a summary of our loan portfolio to builders for land development as of December 31, 2021 and 2020: Schedule of Commercial Loans - Real Estate Development Loan Portfolio Summary Year Number of States Number of Borrowers Number of Loans Gross Value of Collateral (1) Commitment Amount (3) Gross Amount Outstanding Loan to Value Ratio (2) Interest Spread 2021 6 12 15 $ 12,464 $ 9,095 $ 7,657 61 % (4) varies 2020 5 8 9 $ 11,628 $ 10,815 $ 8,230 71 % 7 % (1) The value is determined by the appraised value adjusted for remaining costs to be paid. A portion of this collateral is $ 1,720 1,630 (2) The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above. (3) The commitment amount does not include letters of credit and cash bonds. (4) Represents the weighted average loan to value ratio of the loans.
Summary of Finance Receivables by Classification	Finance Receivables – By risk rating: Summary of Finance Receivables by Classification December 31, 2021 December 31, 2020 Pass $ 38,893 $ 35,544 Special mention 2,344 3,089 Classified – accruing – – Classified – nonaccrual 9,526 11,816 Total $ 50,763 $ 50,449
Schedule of Finance Receivables Impairment Calculation Method	Finance Receivables – Method of impairment calculation: Schedule of Finance Receivables Impairment Calculation Method December 31, 2021 December 31, 2020 Performing loans evaluated individually $ 16,495 $ 16,412 Performing loans evaluated collectively 24,742 22,221 Non-performing loans without a specific reserve 596 1,518 Non-performing loans with a specific reserve 8,930 10,298 Total evaluated collectively for loan losses $ 50,763 $ 50,449
Schedule of Impaired Loans	The following is a summary of our impaired non-accrual commercial construction loans as of December 31, 2021 and 2020: Schedule of Impaired Loans December 31, 2021 December 31, 2020 Unpaid principal balance (contractual obligation from customer) $ 10,035 $ 11,888 Charge-offs and payments applied (509 ) (72 ) Gross value before related allowance 9,526 11,816 Related allowance (1,825 ) (1,698 ) Value after allowance $ 7,701 $ 10,118

Foreclosed Assets (Tables)

Foreclosed Assets (Tables)	12 Months Ended
	Dec. 31, 2021
Foreclosed Assets
Schedule of Roll Forward of Foreclosed Assets	Roll forward of foreclosed assets for the years ended December 31, 2021 and 2020: Schedule of Roll Forward of Foreclosed Assets December 31, 2021 December 31, 2020 Beginning balance $ 4,449 $ 4,916 Additions from loans 791 2,118 Additions for construction/development 818 1,410 Sale proceeds (3,418 ) (3,697 ) Loss on foreclosure (47 ) (54 ) Loss on sale of foreclosed assets (92 ) (102 ) Gain on foreclosure 67 52 Gain on sale of foreclosed assets 166 160 Impairment loss on foreclosed assets (10 ) (290 ) Impairment loss on foreclosed assets due to COVID-19 - (64 ) Ending balance $ 2,724 $ 4,449

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Schedule of Borrowings	The following table displays our borrowings and a ranking of priority: Schedule of Borrowings Priority Rank December 31, 2021 December 31, Borrowing Source Purchase and sale agreements and other secured borrowings 1 $ 19,165 $ 22,968 Secured line of credit from affiliates 2 859 - Unsecured line of credit (senior) 3 1,250 500 EIDL advance 3 - 10 Other unsecured debt (senior subordinated) 4 1,053 1,800 Unsecured Notes through our public offering, gross 5 20,636 21,482 Other unsecured debt (subordinated) 5 4,693 2,747 Other unsecured debt (junior subordinated) 6 447 864 Total $ 48,103 $ 50,371
Schedule of Maturities of Debt	The following table shows the maturity of outstanding debt as of December 31, 2021: Schedule of Maturities of Debt Year Maturing Total Amount Maturing Public Offering Other Unsecured Secured Borrowings 2022 $ 28,238 $ 7,074 $ 1,945 $ 19,219 2023 5,060 3,475 1,514 71 2024 8,716 5,002 3,587 127 2025 5,565 5,085 398 82 2026 and thereafter 524 - - 524 Total $ 48,103 $ 20,636 $ 7,444 $ 20,023
Schedule of Secured Borrowings	Borrowings secured by loan assets are summarized below: Schedule of Secured Borrowings December 31, 2021 December 31, 2020 Book Value of Loans which Served as Collateral Due from Shepherd’s Finance to Loan Purchaser or Lender Book Value of Loans which Served as Collateral Due from Shepherd’s Finance to Loan Purchaser or Lender Loan Purchaser Builder Finance $ 4,847 $ 2,969 $ 7,981 $ 5,919 S.K. Funding 8,084 5,500 4,551 3,898 Lender Shuman 566 125 1,916 1,325 Jeff Eppinger 3,328 1,500 2,206 1,500 Hardy Enterprises, Inc. - - 1,590 1,000 Gary Zentner - - 424 250 R. Scott Summers 1,475 847 1,259 847 John C. Solomon 1,139 563 743 563 Swanson 9,803 6,841 9,381 6,685 Total $ 29,242 $ 18,345 $ 30,051 $ 21,987
Schedule of Roll Forward of Notes Outstanding	Schedule of Roll Forward of Notes Outstanding December 31, 2021 December 31, 2020 Gross notes outstanding, beginning of period $ 21,482 $ 20,308 Notes issued 7,876 7,691 Note repayments / redemptions (8,722 ) (6,517 ) Gross Notes outstanding, end of period 20,636 21,482 Less deferred financing costs, net (367 ) (416 ) Notes outstanding, net $ 20,269 $ 21,066
Schedule of Roll Forward of Deferred Financing Costs	The following is a roll forward of deferred financing costs: Schedule of Roll Forward of Deferred Financing Costs December 31, 2021 December 31, 2020 Deferred financing costs, beginning balance $ 942 $ 786 Additions 119 156 Deferred financing costs, ending balance $ 1,061 $ 942 Less accumulated amortization (694 ) (526 ) Deferred financing costs, net $ 367 $ 416
Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs	The following is a roll forward of the accumulated amortization of deferred financing costs: Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs December 31, 2021 December 31, 2020 Accumulated amortization, beginning balance $ 526 $ 370 Additions 168 165 Disposals - (9 ) Accumulated amortization, ending balance $ 694 $ 526
Schedule of Other Unsecured Loans	Our other unsecured debts are detailed below: Schedule of Other Unsecured Loans Principal Amount Outstanding as of Loan Maturity Date Interest Rate (1) December 31, 2021 December 31, 2020 Unsecured Note with Seven Kings Holdings, Inc. Demand (2) 9.5 % $ 500 $ 500 Unsecured Line of Credit from Swanson July 2022 6.0 % 159 315 Unsecured Line of Credit from Builder Finance, Inc. January 2023 10.0 % 750 - Subordinated Promissory Note December 2021 10.5 % - 146 Subordinated Promissory Note April 2024 10.0 % 100 100 Subordinated Promissory Note April 2021 10.0 % - 174 Subordinated Promissory Note August 2022 11.0 % 200 200 Subordinated Promissory Note March 2023 11.0 % - 169 Subordinated Promissory Note February 2023 10.0 % 600 - Subordinated Promissory Note June 2023 10.0 % 400 - Subordinated Promissory Note February 2021 11.0 % - 600 Subordinated Promissory Note Demand 5.0 % - - Subordinated Promissory Note December 2022 5.0 % 3 3 Subordinated Promissory Note December 2023 11.0 % 20 20 Subordinated Promissory Note February 2024 11.0 % 20 20 Subordinated Promissory Note January 2025 10.0 % 15 - Subordinated Promissory Note November 2021 9.5 % - 200 Subordinated Promissory Note November 2023 9.5 % 200 - Subordinated Promissory Note October 2024 10.0 % 700 700 Subordinated Promissory Note December 2024 10 % 100 100 Subordinated Promissory Note April 2025 10.0 % 202 - Subordinated Promissory Note July 2023 8.0 % 100 - Subordinated Promissory Note July 2024 5.0 % 1,500 - Subordinated Promissory Note September 2023 7.0 % 94 - Subordinated Promissory Note October 2023 7.0 % 100 - Subordinated Promissory Note December 2025 8.0 % 180 - Senior Subordinated Promissory Note March 2022 (3) 10.0 % 334 352 Senior Subordinated Promissory Note March 2022 (4) 1.0 % - 728 Junior Subordinated Promissory Note March 2022 (4) 22.5 % - 417 Senior Subordinated Promissory Note October 2024 (5) 1.0 % 720 720 Junior Subordinated Promissory Note October 2024 (5) 20.0 % 447 447 $ 7,444 $ 5,911 (1) Interest rate per annum, based upon actual days outstanding and a 365/366-day year. (2) Due six months after lender gives notice. (3) Lender may require us to repay $ 20 (4) These notes were issued to the same holder and, when calculated together, yield a blended rate of 11 (5) These notes were issued to the same holder and, when calculated together, yield a blended rate of 10

Redeemable Preferred Equity (Ta

Redeemable Preferred Equity (Tables)	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Schedule of Roll Forward of Redeemable Preferred Equity	Roll forward of redeemable preferred equity: Schedule of Roll Forward of Redeemable Preferred Equity December 31, 2021 December 31, 2020 Beginning balance $ 3,582 $ 2,959 Additions from new investment 1,000 300 Distributions (101 ) (49 ) Additions from reinvestment 533 372 Ending balance $ 5,014 $ 3,582
Schedule of Redemption Option for Investors	The following table shows the earliest redemption options for investors in Series C Preferred Units as of December 31, 2021: Schedule of Redemption Option for Investors Year Maturing Total Amount Redeemable 2024 $ 3,244 2025 402 2026 309 2027 1,059 Total $ 5,014

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Schedule of Related Party Transactions 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 2021 2020 2021 2021 2020 Eric A. Rauscher Independent Manager $ 475 $ 475 10.00 % $ 36 $ 47 Capture HD Inc., Defined Benefit Plan & Trust Sponsor is Brother of Employee 1,000 1,000 11.00 % 149 142 David Wallach Living Trust Father of Member 571 577 10.23 % 58 60 Gregory L. Sheldon Independent Manager 577 1,053 10.22 % 59 112 Joseph Rauscher Parent of Independent Manager 195 195 11.00 % 21 14 Kenneth Summers Independent Manager 100 189 4.00 % 1 20 Schultz Family Revocable Living Trust Trustee is Mother-in-Law of Member 148 132 9.88 % 15 14 Kimberly Bedford Employee 148 160 10.88 % 16 16 Lamar Sheldon Parent of Independent Manager 253 217 9.03 % 23 21

Selected Quarterly Condensed _2

Selected Quarterly Condensed Consolidated Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Condensed Consolidated Financial Data	Summarized unaudited quarterly condensed consolidated financial data for the quarters of 2021 and 2020 are as follows: Selected Quarterly Condensed Consolidated Financial Data Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 Quarter 3 Quarter 2 (1) Quarter 1 2021 2021 2021 2021 2020 2020 2020 2020 Net interest income (loss) $ 958 $ 830 $ 625 $ 411 $ 932 $ 389 $ (228 ) $ 990 Loan loss provision 246 83 45 214 140 70 1,560 35 Net interest income (loss) after loan loss provision 712 747 580 197 792 319 (1,788 ) 955 Gain on sale of foreclosed assets 1 64 13 88 22 135 3 – Gain on foreclosure of assets 67 – – – 52 – – – Impairment gains on foreclosed assets – – – – (4 ) 95 – – Gain on extinguishment of debt – 361 – 10 361 – – – SG&A expense 415 483 438 537 648 367 462 708 Depreciation and amortization 12 12 13 16 22 21 21 21 Loss on sale of foreclosed assets 23 – 51 18 16 51 – 35 Loss on foreclosure of assets 47 – – – 52 2 – – Impairment loss on foreclosed assets – – – 10 241 4 91 109 Net income (loss) $ 283 $ 677 $ 91 $ (286 ) $ 244 $ 104 $ (2,359 ) $ 82

Non-Interest Expense Detail (Ta

Non-Interest Expense Detail (Tables)	12 Months Ended
	Dec. 31, 2021
Non-interest Expense Detail
Schedule of Selling General and Administrative Expenses	The following table displays our selling, general and administrative expenses for the years ended December 31, 2021 and 2020: Schedule of Selling General and Administrative Expenses 2021 2020 Selling, general and administrative expenses Legal and accounting $ 166 $ 224 Salaries and related expenses 819 975 Board related expenses 99 99 Advertising 65 85 Rent and utilities 53 52 Loan and foreclosed asset expenses 348 498 Travel 154 140 Other 169 112 Total SG&A $ 1,873 $ 2,185

Summary of Concentration Risks

Summary of Concentration Risks (Details) - Loans Receivable [Member] - Customer Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Highest Concentration Risk [Member]
Product Information [Line Items]
Borrower City	Pittsburgh, PA	Pittsburgh, PA
Percent of Loan Commitments	26.00%	29.00%
Second Highest Concentration Risk [Member]
Product Information [Line Items]
Borrower City	Orlando, FL	Orlando, FL
Percent of Loan Commitments	7.00%	12.00%
Third Highest Concentration Risk [Member]
Product Information [Line Items]
Borrower City	Spokane, WA	Cape Coral, FL
Percent of Loan Commitments	4.00%	6.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Advertising expenses	$ 65	$ 85

Schedule of Non-financial Instr

Schedule of Non-financial Instruments Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed assets	$ 2,724	$ 4,449	$ 4,916
Impaired loans due to COVID-19, net	1,483	1,532
Fair Value, Inputs, Level 1 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed assets
Impaired loans due to COVID-19, net
Other impaired loans, net
Total
Fair Value, Inputs, Level 2 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed assets
Impaired loans due to COVID-19, net
Other impaired loans, net
Total
Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed assets	2,724	4,449
Impaired loans due to COVID-19, net	5,129	9,054
Other impaired loans, net	2,572	1,064
Total	10,425	14,567
Fair Value of Carrying Amount [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed assets	2,724	4,449
Impaired loans due to COVID-19, net	5,129	9,054
Other impaired loans, net	2,572	1,064
Total	10,425	14,567
Estimated Fair Value [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Foreclosed assets	2,724	4,449
Impaired loans due to COVID-19, net	5,129	9,054
Other impaired loans, net	2,572	1,064
Total	$ 10,425	$ 14,567

Schedule of Fair Value Estimate

Schedule of Fair Value Estimates for Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Carrying Amount [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents	$ 3,735	$ 4,749
Loans receivable, net	46,943	46,405
Accrued interest on loans	598	601
Customer interest escrow	479	510
Notes payable secured, net	20,016	22,959
Notes payable unsecured, net	27,713	26,978
Accrued interest payable	2,464	3,158
Estimated Fair Value [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents	3,735	4,749
Loans receivable, net	46,943	46,405
Accrued interest on loans	598	601
Customer interest escrow	479	510
Notes payable secured, net	20,016	22,959
Notes payable unsecured, net	27,713	26,978
Accrued interest payable	$ 2,464	$ 3,158

Fair Value (Details Narrative)

Fair Value (Details Narrative)	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Impaired loan description	The appraisals used to establish the value of impaired loans are based on similar properties at similar times; however due to the differences in time and properties, the impaired loans are classified as Level 3. There were 23 and 29 impaired loan assets as of December 31, 2021 and December 31, 2020, respectively

Schedule of Roll Forward of Rea

Schedule of Roll Forward of Real Estate Investment Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Real Estate [Abstract]
Beginning balance	$ 1,181
Transfers from loans		1,140
Deposits from real estate investments	(200)
Additions for construction/development	670	41
Ending balance	$ 1,651	$ 1,181

Real Estate Investment Assets_2

Real Estate Investment Assets (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)
Real Estate [Abstract]
Extinguishing of the loans	$ 640
Payment of a management fee	$ 500

Schedule of Financing Receivabl

Schedule of Financing Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Loans receivable, gross	$ 50,763	$ 50,449
Less: Deferred loan fees	(1,143)	(1,092)
Less: Deposits	(934)	(1,337)
Plus: Deferred origination costs	305	353
Less: Allowance for loan losses	(2,048)	(1,968)
Loans receivable, net	$ 46,943	$ 46,405

Schedule of Commercial Loans -

Schedule of Commercial Loans - Construction Loan Portfolio Summary (Details) $ in Thousands		12 Months Ended
		Dec. 31, 2021USD ($)Integer		Dec. 31, 2020USD ($)Integer
Financing Receivable, Past Due [Line Items]
Gross Amount Outstanding		$ 50,763		$ 50,449
Home Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Number of States | Integer		20		21
Number of Borrowers | Integer		66		67
Number of Loans | Integer		224		213
Value of Collateral	[1]	$ 98,935		$ 86,268
Commitment Amount		66,008		61,714
Gross Amount Outstanding		$ 43,106		$ 42,219
Loan to Value Ratio	[3]	67.00%	[2]	72.00%
Loan Fee		5.00%		5.00%
[1]	The value is determined by the appraised value.
[2]	Represents the weighted average loan to value ratio of the loans.
[3]	The loan to value ratio is calculated by taking the commitment amount and dividing by the appraised value.

Schedule of Commercial Loans _2

Schedule of Commercial Loans - Real Estate Development Loan Portfolio Summary (Details) $ in Thousands		12 Months Ended
		Dec. 31, 2021USD ($)Integer		Dec. 31, 2020USD ($)Integer
Financing Receivable, Past Due [Line Items]
Gross Amount Outstanding		$ 50,763		$ 50,449
Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Number of States | Integer		6		5
Number of Borrowers | Integer		12		8
Number of Loans | Integer		15		9
Gross Value of Collateral	[1]	$ 12,464		$ 11,628
Commitment Amount	[2]	9,095		10,815
Gross Amount Outstanding		$ 7,657		$ 8,230
Loan to Value Ratio	[4]	61.00%	[3]	71.00%
Interest Spread				7.00%
[1]	The value is determined by the appraised value adjusted for remaining costs to be paid. A portion of this collateral is $ 1,720 1,630
[2]	The commitment amount does not include letters of credit and cash bonds.
[3]	Represents the weighted average loan to value ratio of the loans.
[4]	The loan to value ratio is calculated by taking the outstanding amount and dividing by the appraised value calculated as described above.

Schedule of Commercial Loans _3

Schedule of Commercial Loans - Real Estate Development Loan Portfolio Summary (Details) (Parenthetical0 - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Collateral preferred equity	$ 1,720	$ 1,630

Summary of Finance Receivables

Summary of Finance Receivables by Classification (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 50,763	$ 50,449
Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	50,763	50,449
Financing Receivable [Member] | Pass [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	38,893	35,544
Financing Receivable [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	2,344	3,089
Financing Receivable [Member] | Classified - Accruing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross
Financing Receivable [Member] | Classified - Nonaccrual [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 9,526	$ 11,816

Schedule of Finance Receivables

Schedule of Finance Receivables Impairment Calculation Method (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total evaluated collectively for loan losses	$ 50,763	$ 50,449
Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total evaluated collectively for loan losses	50,763	50,449
Financing Receivable [Member] | Performing Loans Evaluated Individually [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total evaluated collectively for loan losses	16,495	16,412
Financing Receivable [Member] | Performing Loans Evaluated Collectively [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total evaluated collectively for loan losses	24,742	22,221
Financing Receivable [Member] | Non-Performing Loans Without a Specific Reserve [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total evaluated collectively for loan losses	596	1,518
Financing Receivable [Member] | Non-performing Loans with a Specific Reserve [ Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total evaluated collectively for loan losses	$ 8,930	$ 10,298

Schedule of Impaired Loans (Det

Schedule of Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Unpaid principal balance (contractual obligation from customer)	$ 10,035	$ 11,888
Charge-offs and payments applied	(509)	(72)
Gross value before related allowance	9,526	11,816
Related allowance	(1,825)	(1,698)
Value after allowance	$ 7,701	$ 10,118

Financing Receivables (Details

Financing Receivables (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Allowance for loan losses	$ 2,048	$ 1,968
Related to loans without specific reserves	163	151
Related to loans with specific reserves	342
Special mention loans	60	120
Loans impaired due to impacts from COVID-19	1,483	1,532
Loans charge offs	$ 509	72
Impaired loans not due to impacts from COVID-19		$ 165
Description on construction loan	As of December 31, 2021, we have 66 borrowers, all of whom borrow money for the purpose of building new homes. The loans typically involve funding of the lot and a portion of construction costs, for a total of between 50% and 70% of the completed value of the new home. As the home is built during the course of the loan, the loan balance increases. The loans carry an interest rate of 3% above our cost of funds. In addition, we charge a 5% loan fee. The cost of funds was 10.91% as of December 31, 2021 and the interest rate charged to most customers was 13.91%. The loans are demand loans. Most have a deposit from the builder during construction to help offset the risk of partially built homes, and some have an interest escrow to offset payment of monthly interest risk.
Interest rate on loan	3.00%
Percentage on loan fee	5.00%
Percentage on cost of funds	10.91%
Customer [Member]
Percentage on cost of funds	13.91%
Minimum [Member]
Percentage on portion of construction costs	50.00%
Maximum [Member]
Percentage on portion of construction costs	70.00%

Schedule of Roll Forward of For

Schedule of Roll Forward of Foreclosed Assets (Details) - USD ($) $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	[1]	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Foreclosed Assets
Beginning balance				$ 4,449					$ 4,916	$ 4,449	$ 4,916
Additions from loans										791	2,118
Additions for construction/development										818	1,410
Sale proceeds										(3,418)	(3,697)
Loss on foreclosure										(47)	(54)
Loss on sale of foreclosed assets										(92)	(102)
Gain on foreclosure	$ (67)				$ (52)					67	52
Gain on sale										166	160
Impairment loss on foreclosed assets				$ 10	241	$ 4	$ 91		$ 109	(10)	(290)
Impairment loss on foreclosed assets due to COVID-19											(64)
Ending balance	$ 2,724				$ 4,449					$ 2,724	$ 4,449
[1]	During the quarter ended June 30, 2020, net interest income after loan loss provision was reduced due to COVID-19 by $ 1,492 469 91

Schedule of Borrowings (Details

Schedule of Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Purchase and sale agreements and other secured borrowings	$ 19,165	$ 22,968
Secured line of credit from affiliates	859
Unsecured line of credit (senior)	1,250	500
EIDL advance		10
Other unsecured debt (senior subordinated)	1,053	1,800
Unsecured Notes through our public offering, gross	20,636	21,482
Other unsecured debt (subordinated)	4,693	2,747
Other unsecured debt (junior subordinated)	447	864
Total	$ 48,103	$ 50,371

Schedule of Maturities of Debt

Schedule of Maturities of Debt (Details) $ in Thousands	Dec. 31, 2021USD ($)
Total Amount Maturing [Member]
Short-term Debt [Line Items]
2022	$ 28,238
2023	5,060
2024	8,716
2025	5,565
2026 and thereafter	524
Total	48,103
Public Offering [Member]
Short-term Debt [Line Items]
2022	7,074
2023	3,475
2024	5,002
2025	5,085
2026 and thereafter
Total	20,636
Other Unsecured [Member]
Short-term Debt [Line Items]
2022	1,945
2023	1,514
2024	3,587
2025	398
2026 and thereafter
Total	7,444
Secured Borrowings [Member]
Short-term Debt [Line Items]
2022	19,219
2023	71
2024	127
2025	82
2026 and thereafter	524
Total	$ 20,023

Schedule of Secured Borrowings

Schedule of Secured Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Book Value of Loans which Served as Collateral	$ 29,242	$ 30,051
Due from Related Parties	18,345	21,987
Shuman [Member]
Book Value of Loans which Served as Collateral	566	1,916
Due from Related Parties	125	1,325
Jeff Eppinger [Member]
Book Value of Loans which Served as Collateral	3,328	2,206
Due from Related Parties	1,500	1,500
Gary Zentner [Member]
Book Value of Loans which Served as Collateral		424
Due from Related Parties		250
R. Scott Summers [Member]
Book Value of Loans which Served as Collateral	1,475	1,259
Due from Related Parties	847	847
John C Solomon [Member]
Book Value of Loans which Served as Collateral	1,139	743
Due from Related Parties	563	563
Swanson [Member]
Book Value of Loans which Served as Collateral	9,803	9,381
Due from Related Parties	6,841	6,685
Builder Finance [Member]
Book Value of Loans which Served as Collateral	4,847	7,981
Due from Related Parties	2,969	5,919
S.K. Funding, LLC [Member]
Book Value of Loans which Served as Collateral	8,084	4,551
Due from Related Parties	5,500	3,898
Hardy Enterprises, Inc. [Member]
Book Value of Loans which Served as Collateral		1,590
Due from Related Parties		$ 1,000

Schedule of Roll Forward of Not

Schedule of Roll Forward of Notes Outstanding (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Gross Notes outstanding, beginning of period	$ 21,482	$ 20,308
Notes issued	7,876	7,691
Note repayments / redemptions	(8,722)	(6,517)
Gross Notes outstanding, end of period	20,636	21,482
Less deferred financing costs, net	(367)	(416)
Notes outstanding, net	$ 20,269	$ 21,066

Schedule of Roll Forward of Def

Schedule of Roll Forward of Deferred Financing Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Deferred financing costs, beginning balance	$ 942	$ 786
Additions	119	156
Deferred financing costs, ending balance	1,061	942
Less accumulated amortization	(694)	(526)	$ (370)
Deferred financing costs, net	$ 367	$ 416

Schedule of Roll Forward of Acc

Schedule of Roll Forward of Accumulated Amortization of Deferred Financing Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Accumulated amortization, beginning balance	$ 526	$ 370
Additions	168	165
Disposals		(9)
Accumulated amortization, ending balance	$ 694	$ 526

Schedule of Other Unsecured Loa

Schedule of Other Unsecured Loans (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020
Unsecured Note with Seven Kings Holdings, Inc. [Member]
Short-term Debt [Line Items]
Maturity Date	[1]	Demand
Interest Rate	[2]	9.50%
Other Unsecured Loans		$ 500	$ 500
Unsecured Line of Credit from Swanson [Member]
Short-term Debt [Line Items]
Maturity Date		July 2022
Interest Rate	[2]	6.00%
Other Unsecured Loans		$ 159	315
Unsecured Line of Credit from Bulider Finance [Member]
Short-term Debt [Line Items]
Maturity Date		January 2023
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 750
Subordinated Promissory Note One [Member]
Short-term Debt [Line Items]
Maturity Date		December 2021
Interest Rate	[2]	10.50%
Other Unsecured Loans			146
Subordinated Promissory Note Two [Member]
Short-term Debt [Line Items]
Maturity Date		April 2024
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 100	100
Subordinated Promissory Notes Three [Member]
Short-term Debt [Line Items]
Maturity Date		April 2021
Interest Rate	[2]	10.00%
Other Unsecured Loans			174
Subordinated Promissory Note Four [Member]
Short-term Debt [Line Items]
Maturity Date		August 2022
Interest Rate	[2]	11.00%
Other Unsecured Loans		$ 200	200
Subordinated Promissory Note Five [Member]
Short-term Debt [Line Items]
Maturity Date		March 2023
Interest Rate	[2]	11.00%
Other Unsecured Loans			169
Subordinated Promissory Note Six [Member]
Short-term Debt [Line Items]
Maturity Date		February 2023
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 600
Subordinated Promissory Note Seven [Member]
Short-term Debt [Line Items]
Maturity Date		June 2023
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 400
Subordinated Promissory Note Eight [Member]
Short-term Debt [Line Items]
Maturity Date		February 2021
Interest Rate	[2]	11.00%
Other Unsecured Loans			600
Subordinated Promissory Note Nine [Member]
Short-term Debt [Line Items]
Maturity Date		Demand
Interest Rate	[2]	5.00%
Other Unsecured Loans
Subordinated Promissory Note Ten [Member]
Short-term Debt [Line Items]
Maturity Date		December 2022
Interest Rate	[2]	5.00%
Other Unsecured Loans		$ 3	3
Subordinated Promissory Note Eleven [Member]
Short-term Debt [Line Items]
Maturity Date		December 2023
Interest Rate	[2]	11.00%
Other Unsecured Loans		$ 20	20
Subordinated Promissory Note Twelve [Member]
Short-term Debt [Line Items]
Maturity Date		February 2024
Interest Rate	[2]	11.00%
Other Unsecured Loans		$ 20	20
Subordinated Promissory Note Thirteen [Member]
Short-term Debt [Line Items]
Maturity Date		January 2025
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 15
Subordinated Promissory Note Fourteen [Member]
Short-term Debt [Line Items]
Maturity Date		November 2021
Interest Rate	[2]	9.50%
Other Unsecured Loans			200
Subordinated Promissory Note Fifteen [Member]
Short-term Debt [Line Items]
Maturity Date		November 2023
Interest Rate	[2]	9.50%
Other Unsecured Loans		$ 200
Subordinated Promissory Note Sixteen [Member]
Short-term Debt [Line Items]
Maturity Date		October 2024
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 700	700
Subordinated Promissory Note Seventeen [Member]
Short-term Debt [Line Items]
Maturity Date		December 2024
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 100	100
Subordinated Promissory Note Eighteen [Member]
Short-term Debt [Line Items]
Maturity Date		April 2025
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 202
Subordinated Promissory Note Nineteen [Member]
Short-term Debt [Line Items]
Maturity Date		July 2023
Interest Rate	[2]	8.00%
Other Unsecured Loans		$ 100
Subordinated Promissory Note Twenty [Member]
Short-term Debt [Line Items]
Maturity Date		July 2024
Interest Rate	[2]	5.00%
Other Unsecured Loans		$ 1,500
Subordinated Promissory Note Twenty One [Member]
Short-term Debt [Line Items]
Maturity Date		September 2023
Interest Rate	[2]	7.00%
Other Unsecured Loans		$ 94
Subordinated Promissory Note Twenty Two [Member]
Short-term Debt [Line Items]
Maturity Date		October 2023
Interest Rate	[2]	7.00%
Other Unsecured Loans		$ 100
Subordinated Promissory Note Twenty Three [Member]
Short-term Debt [Line Items]
Maturity Date		December 2025
Interest Rate	[2]	8.00%
Other Unsecured Loans		$ 180
Senior Subordinated Promissory Note [Member]
Short-term Debt [Line Items]
Maturity Date	[3]	March 2022
Interest Rate	[2]	10.00%
Other Unsecured Loans		$ 334	352
Senior Subordinated Promissory Note One [Member]
Short-term Debt [Line Items]
Maturity Date	[4]	March 2022
Interest Rate	[2]	1.00%
Other Unsecured Loans			728
Debt yield return percentage		11.00%
Junior Subordinated Promissory Note [Member]
Short-term Debt [Line Items]
Maturity Date	[4]	March 2022
Interest Rate	[2]	22.50%
Other Unsecured Loans			417
Debt yield return percentage		11.00%
Senior Subordinated Promissory Note Two [Member]
Short-term Debt [Line Items]
Maturity Date	[5]	October 2024
Interest Rate	[2]	1.00%
Other Unsecured Loans		$ 720	720
Debt yield return percentage		10.00%
Junior Subordinated Promissory Note One [Member]
Short-term Debt [Line Items]
Maturity Date	[5]	October 2024
Interest Rate	[2]	20.00%
Other Unsecured Loans		$ 447	447
Debt yield return percentage		10.00%
Other Unsecured Debt [Member]
Short-term Debt [Line Items]
Other Unsecured Loans		$ 7,444	$ 5,911
[1]	Due six months after lender gives notice.
[2]	Interest rate per annum, based upon actual days outstanding and a 365/366-day year.
[3]	Lender may require us to repay $ 20
[4]	These notes were issued to the same holder and, when calculated together, yield a blended rate of 11
[5]	These notes were issued to the same holder and, when calculated together, yield a blended rate of 10

Schedule of Other Unsecured L_2

Schedule of Other Unsecured Loans (Details) (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)
Senior Subordinated Promissory Note [Member]
Short-term Debt [Line Items]
Repayments of Debt	$ 20
Senior Subordinated Promissory Note One [Member]
Short-term Debt [Line Items]
Debt yield return percentage	11.00%
Senior Subordinated Promissory Note Two [Member]
Short-term Debt [Line Items]
Debt yield return percentage	10.00%

Borrowings (Details Narrative)

Borrowings (Details Narrative) - USD ($) $ in Thousands

1 Months Ended

12 Months Ended

Feb. 28, 2021

Nov. 30, 2020

Jun. 30, 2020

Apr. 30, 2020

Dec. 31, 2018

Jun. 30, 2018

Mar. 31, 2018

Jan. 31, 2018

Jul. 31, 2017

Dec. 31, 2021

Dec. 31, 2020

Aug. 31, 2021

Apr. 30, 2021

May 31, 2020

Dec. 31, 2019

Debt Instrument [Line Items]

Additional collateral value

$ 400

Increased additional collateral value

2,000

Interest expense

$ 5,120

$ 6,126

Deferred costs

$ 7

8

Debt instrument interest rate, effective percentage

3.00%

Office Building [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

5.07%

Debt instrument, face amount

$ 604

619

Debt instrument, unused borrowing capacity, amount

$ 660

Debt instrument, maturity date, description

Due in January 2033

Interest expense

$ 32

$ 33

Wallach LOC [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

6.25%

6.25%

Long-term line of credit

$ 0

$ 0

Line of Credit Facility, Remaining Borrowing Capacity

$ 1,250

Wallach LOC [Member] | Prime plus [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

3.00%

Wallach trust LOC [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

6.25%

6.25%

Line of credit facility, maximum borrowing capacity

$ 250

Wallach trust LOC [Member] | Prime plus [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

3.00%

Myrick LOC agreement Agreement [Member]

Debt Instrument [Line Items]

Long-term line of credit

859

$ 0

Line of credit facility, maximum borrowing capacity

$ 1,000

Line of credit facility, commitment fee percentage

3.00%

Interest expense, debt

6

19

New line of credit agreements [Member]

Debt Instrument [Line Items]

Long-term line of credit

2,909

4,159

Line of credit facility, maximum borrowing capacity

6,063

$ 6,063

Interest expense, debt

$ 262

$ 341

Notes Program [Member]

Debt Instrument [Line Items]

Debt instrument interest rate, effective percentage

9.28%

10.38%

Paycheck Protection Program [Member]

Debt Instrument [Line Items]

Debt instrument, face amount

$ 361

$ 361

$ 361

Debt Instrument, Decrease, Forgiveness

$ 10

$ 361

$ 10

Two Loan Purchase and Sale Agreement [Member] | Principal Amount Exceeds $2000 [Member]

Debt Instrument [Line Items]

Debt Instrument, Description

If the total principal amount exceeds $1,000, S.K. Funding must fund the amount between $1,000 and less than or equal to $4,500.

Two Loan Purchase and Sale Agreement [Member] | Principal Amount Less Than $5,500 [Member]

Debt Instrument [Line Items]

Debt Instrument, Description

If the total principal amount is less than $4,500, then the Company will also repay S.K. Funding’s principal as principal payments are received on the Pennsylvania Loans from the underlying borrowers in the amount by which the total principal amount is less than $4,500 until S.K. Funding’s principal has been repaid in full.

Two Loan Purchase and Sale Agreement [Member] | Minimum [Member]

Debt Instrument [Line Items]

Percentage on loans sold to pruchaser

50.00%

Two Loan Purchase and Sale Agreement [Member] | Maximum [Member]

Debt Instrument [Line Items]

Percentage on loans sold to pruchaser

75.00%

Loan Purchase and Sale Agreement [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

10.50%

Debt instrument, face amount

2,000

Debt instrument original value

$ 1,000

Loan Purchase and Sale Agreement [Member] | Borrowers [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

6.00%

11.00%

Shuman Line of Credit Agreement [Member] | Shuman [Member]

Debt Instrument [Line Items]

Long-term line of credit

$ 125

$ 1,325

Line of credit facility, maximum borrowing capacity

$ 1,325

Line of credit facility, commitment fee percentage

10.00%

Interest expense, debt

77

135

Line of credit facility, description

Due in July 2022, but will automatically renew for additional 12-month periods, unless either party gives notice to not renew.

Swanson Modification Agreement [Member] | Paul Swanson [Member]

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 7,000

Line of credit facility, commitment fee percentage

6.00%

Interest expense, debt

619

709

Line of credit facility, description

automatically renew for additional 12-month periods

Business Loan Agreement [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

3.80%

Long-term line of credit

217

362

Interest expense, debt

$ 11

$ 8

Debt instrument, unused borrowing capacity, amount

$ 362

Debt instrument, maturity date, description

Due in July 2025

Schedule of Roll Forward of Red

Schedule of Roll Forward of Redeemable Preferred Equity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Series C Cumulative Preferred Equity, beginning balance	$ 3,582	$ 2,959
Additions from new investment	1,000	300
Distributions	(101)	(49)
Additions from reinvestment	533	372
Series C Cumulative Preferred Equity, ending balance	$ 5,014	$ 3,582

Schedule of Redemption Option f

Schedule of Redemption Option for Investors (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 5,014	$ 3,582	$ 2,959
2024 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	3,244
2025 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	402
2026 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	309
2027 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 1,059

Redeemable Preferred Equity (De

Redeemable Preferred Equity (Details Narrative)	12 Months Ended
	Dec. 31, 2021
Series C Preferred Units [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Equity dividend distribution, description	he Series C Preferred Units have a fixed value which is their purchase price and preferred liquidation and distribution rights. Yearly distributions of 12% of the Series C Preferred Units’ value (provided profits are available) will be made on a quarterly basis. This rate may increase if any interest rate on our public Notes offering rises above 12%. Dividends may be reinvested monthly into additional Series C Preferred Units.

Members_ Capital (Details Narra

Members’ Capital (Details Narrative) - USD ($) $ in Thousands	1 Months Ended
	Dec. 31, 2015	Dec. 31, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Series B preferred equity, issuance value		$ 1,720	$ 1,630
Class A Common Units [Member]
Class of Stock [Line Items]
Common unit, outstanding		2,629	2,629
Series B Preferred Units [Member]
Class of Stock [Line Items]
Number of units agreed to purchase	The Series B Preferred Units were issued to the Hoskins Group through a reduction in a loan issued by the Hoskins Group to the Company. In December 2015, the Hoskins Group agreed to purchase 0.1 Series B Preferred Units for $10 at each closing of a lot to a third party in the Hamlets and Tuscany subdivision
Number Of Preferred Units Value To Purchase	10
Preferred units, issued		17.2	16.3

Schedule of Related Party Trans

Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Eric A Rauscher [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 475	$ 475
Debt, Weighted Average Interest Rate	10.00%
Interest Expense, Related Party	$ 36	47
Capture HD Inc Defined Benefit Plan Trust [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 1,000	1,000
Debt, Weighted Average Interest Rate	11.00%
Interest Expense, Related Party	$ 149	142
David Wallach [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 571	577
Debt, Weighted Average Interest Rate	10.23%
Interest Expense, Related Party	$ 58	60
Gregory L Sheldon [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 577	1,053
Debt, Weighted Average Interest Rate	10.22%
Interest Expense, Related Party	$ 59	112
Joseph Rauscher [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 195	195
Debt, Weighted Average Interest Rate	11.00%
Interest Expense, Related Party	$ 21	14
Kenneth Summers [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 100	189
Debt, Weighted Average Interest Rate	4.00%
Interest Expense, Related Party	$ 1	20
Schultz Family Revocable Living Trust [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 148	132
Debt, Weighted Average Interest Rate	9.88%
Interest Expense, Related Party	$ 15	14
Kimberly Bedford [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 148	160
Debt, Weighted Average Interest Rate	10.88%
Interest Expense, Related Party	$ 16	16
Lamer Sheldon [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties	$ 253	217
Debt, Weighted Average Interest Rate	9.03%
Interest Expense, Related Party	$ 23	$ 21

Related Party Transactions (Det

Related Party Transactions (Details Narrative) $ in Thousands	1 Months Ended			12 Months Ended
	Dec. 31, 2019USD ($)Integer	Jun. 30, 2019USD ($)Integer	Sep. 30, 2018USD ($)Integer	Dec. 31, 2021USD ($)Integer	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)Integer	Jul. 31, 2020USD ($)Integer
MrSummers [Member]
Related Party Transaction [Line Items]
Loan principal amount not exceed				$ 2,000
Mr Wallach [Member]
Related Party Transaction [Line Items]
Number of loans sold | Integer		2					2
Repayment of loans		$ 375
Payments to purchase loans held-for-sale		$ 286
Proceeds from sale of loans held-for-sale						$ 254
Loans payable							$ 198
William myrick (Member)
Related Party Transaction [Line Items]
Number of loans sold | Integer	2		2	2		2
Loans receivables			$ 394
Cash received from related party			94
Reduction in line of credit			$ 300
Repayment of loans					$ 245	$ 765
Payments to purchase loans held-for-sale				$ 141		$ 456
Proceeds from sale of loans held-for-sale	$ 254
Series C Preferred Units [Member]
Related Party Transaction [Line Items]
Preferred units, description				Mr. Wallach and his wife’s parents own 18.05 and 1.45 of our Series C Preferred Units, respectively. One of our managers, Gregory L. Sheldon, owns 6.31 of our Series C Preferred Units
One independent managers [Member] | Class A Common Units [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage				1.00%
Executive vice president of operations one [Member] | Class A Common Units [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage				2.00%
Executive Vice President of Sales [Member] | Class A Common Units [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage				15.30%
Senior Subordinated Promissory Note [Member] | Daniel MrWallach [Member]
Related Party Transaction [Line Items]
Debt instrument interest rate				10.00%
Debt instrument, face amount				$ 333
Repayments of debt				$ 20
CEO [Member]
Related Party Transaction [Line Items]
Number of loans sold | Integer			3
Loans receivables			$ 281
Cash received from related party			104
Reduction in line of credit			$ 177
Independent Managers [Member]
Related Party Transaction [Line Items]
Number of loans sold | Integer				1
Payments to purchase loans held-for-sale				$ 405
Notes Program from Employees, Managers, Members and Relatives of Managers and Members [Member]
Related Party Transaction [Line Items]
Notes payable, related parties				3,989
Investments in and Advances to Affiliates, at Fair Value				$ 120	$ 120
Loan Agreement [Member] | Wallach LOC [Member] | Prime plus [Member]
Related Party Transaction [Line Items]
Debt instrument interest rate				3.00%
Loan Agreement [Member] | Myrick LOC [Member] | Prime plus [Member]
Related Party Transaction [Line Items]
Debt instrument interest rate				3.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Letter of credit, amount outstanding	$ 22,902	$ 19,495

Selected Quarterly Condensed _3

Selected Quarterly Condensed Consolidated Financial Data (Details) - USD ($) $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	[1]	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Net interest income (loss)	$ 958	$ 830	$ 625	$ 411	$ 932	$ 389	$ (228)		$ 990	$ 2,824	$ 2,083
Loan loss provision	246	83	45	214	140	70	1,560		35
Net interest income (loss) after loan loss provision	712	747	580	197	792	319	(1,788)		955
Gain on sale of foreclosed assets	1	64	13	88	22	135	3
Gain on foreclosure of assets	67				52					(67)	(52)
Impairment gains on foreclosed assets					(4)	95					91
Gain on extinguishment of debt		361		10	361					371	361
SG&A expense	415	483	438	537	648	367	462		708	1,873	2,185
Depreciation and amortization	12	12	13	16	22	21	21		21
Loss on sale of foreclosed assets	23		51	18	16	51			35
Loss on foreclosure of assets	47				52	2				47	54
Impairment loss on foreclosed assets				10	241	4	91		109	$ (10)	$ (290)
Net income (loss)	$ 283	$ 677	$ 91	$ (286)	$ 244	$ 104	$ (2,359)		$ 82
[1]	During the quarter ended June 30, 2020, net interest income after loan loss provision was reduced due to COVID-19 by $ 1,492 469 91

Selected Quarterly Condensed _4

Selected Quarterly Condensed Consolidated Financial Data (Details) (Parenthetical) $ in Thousands	3 Months Ended
	Jun. 30, 2020USD ($)
Quarterly Financial Information Disclosure [Abstract]
Net interest income after loan loss provision	$ 1,492
Writeoff interest income	469
Impairment losses on foreclosed assets	$ 91

Schedule of Selling General and

Schedule of Selling General and Administrative Expenses (Details) - USD ($) $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	[1]	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Non-interest Expense Detail
Legal and accounting										$ 166	$ 224
Salaries and related expenses										819	975
Board related expenses										99	99
Advertising										65	85
Rent and utilities										53	52
Loan and foreclosed asset expenses										348	498
Travel										154	140
Other										169	112
Total SG&A	$ 415	$ 483	$ 438	$ 537	$ 648	$ 367	$ 462		$ 708	$ 1,873	$ 2,185
[1]	During the quarter ended June 30, 2020, net interest income after loan loss provision was reduced due to COVID-19 by $ 1,492 469 91