On May 20, 2020, Harvest Capital Credit Corporation entered into the Ninth Amendment to the Loan and Security Agreement, by and among the Company, HCAP Equity Holdings, LLC and HCAP ICC, LLC as borrowers, Pacific Western Bank, as agent and a lender, and each of the other lenders from time to time party thereto, including City National Bank. The Amendment amends the Loan and Security Agreement dated as of October 29, 2013 (as amended, restated and modified from time to time, the “Loan Agreement”). The Amendment amends the Loan Agreement to effectuate the following, among other things: (1) extend the revolving period from April 30, 2020 to the earlier of (a) July 31, 2020 and (b) June 19, 2020, solely to the extent that, prior to such date, the Company does not cause an amount equal to $1.4 million from the proceeds of the sale of a certain portfolio investment of the Company (such sale, the “Reallocation Loan Sale”) or otherwise (with the prior written consent of CNB) to be paid to PacWest (the date upon which the Company has satisfied such $1.4 million payment, the “Commitment Reallocation Trigger Date”) to pay down the principal balance of advances made by PacWest as of the Commitment Reallocation Trigger Date; (2) provide that additional advances requested on and after April 30, 2020 will be made only at the discretion of the lenders; (3) reduce aggregate commitments under the Loan Agreement to $45.0 million from $55.0 million; (4) revise the Company’s tangible net worth covenant to reflect a minimum of, (a) as of any date prior to the Commitment Reallocation Trigger Date, $60 million, and (b) as of any date on or after the Commitment Reallocation Trigger Date, an amount equal to $60 million minus the amount of the Company’s loss realized in connection with the Reallocation Loan Sale, which realized loss the Company estimates will range from $1.7 million to $1.9 million; (5) increase the interest rate on borrowings to a per annum rate equal to the lesser of (a) the applicable LIBOR rate plus 4.50% (with a 1.00% LIBOR floor) and (b) the maximum rate permitted under applicable law; (6) effectively limit the aggregate value of eligible loans in the borrowing base to maximum of approximately $44.3 million; (7) amend the definition of “LIBOR” to provide for the use of an Alternative Rate (as defined in the Loan Agreement) if certain conditions are satisfied; (8) remove the step-up to 0.75% in the unused line fee, such that, commencing on and after April 30, 2020, the Company is required to pay a monthly fee of 0.50% per annum for unused amounts during the revolving period, calculated based on the difference between (a) the maximum loan amount under the Loan Agreement and (b) the average daily principal balance of the obligations outstanding during the prior calendar month; (9) remove the minimum utilization fee; (10) prohibit the Company from repurchasing shares of its common stock and declaring and paying any distribution or dividend from April 30, 2020 until the termination of the Loan Agreement, except, in the case of distributions and dividends, to the extent necessary for the Company to maintain its eligibility to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended; and (11) set the minimum liquidity covenant threshold to at least $2.2 million through termination of the Loan Agreement. In the event that the Commitment Reallocation Trigger Date does not occur prior to June 19, 2020, the amortization period under the Loan Agreement will be deemed to have commenced as of May 1, 2020 for purposes of determining the first month in which the Company must make mandatory pre-payments to pay down its principal amount outstanding under the Loan Agreement. The other material terms of the Loan Agreement were unchanged.