---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-23-043906"
form_type: "8-K"
ticker: null
cik: "0001784567"
company_name: "Harbor Custom Development, Inc."
filed_at: "2023-12-06T23:59:59+00:00"
generated_at: "2026-06-07T17:19:02.562491+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Harbor Custom Development defaults on $22M in loans; obligations accelerated

## Summary
- Default on $8M principal + $55,555.56 interest due Nov 25 to Fratelli's LLC; 18% default rate applies.
- BankUnited accelerated $14,197,706.88 principal plus $111,992.10 interest due Dec 4; default rate is contract+3%.
- Both defaults reported via Item 2.04; all amounts are due and payable immediately.

## SEC filing metadata
- accession: 0001493152-23-043906
- form_type: 8-K
- cik: 0001784567
- company_name: Harbor Custom Development, Inc.
- filed_at: 2023-12-06T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 2.04
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1784567/000149315223043906/0001493152-23-043906-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1784567/000149315223043906/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-043906
- JSON: https://secwatch.observer/filing/0001493152-23-043906.json
- Plain text: https://secwatch.observer/filing/0001493152-23-043906.txt

## Key facts
- Debt Financings
  Harbor Custom Development, Inc. reported a default on loan of $14,197,706.88 with BankUnited, N.A. at contract rate plus 3%.
  - Instrument: loan
  - Principal: $14,197,706.88
  - Counterparty: BankUnited, N.A.
  - Rate: contract rate plus 3%
  - Event: default
  source text: On December 4, 2023, the Company received a notice of event of default and acceleration of all amounts due under the Loan from the Lender. According to the Lender, the principal amount due is $14,197,706.88 plus interest of $111,992.10 as of December 4, 2023 (the “Debt”). The Debt will accrue additional interest at the default rate from December 4, 2023, which rate floats at the contract rate plus 3%, until the Debt is paid in full.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1784567/000149315223043906/0001493152-23-043906-index.htm
- Debt Financings
  Harbor Custom Development, Inc. reported a default on loan of $8,000,000 of principal with Fratelli's LLC at 18%.
  - Instrument: loan
  - Principal: $8,000,000 of principal
  - Counterparty: Fratelli's LLC
  - Rate: 18%
  - Event: default
  source text: On November 30, 2023, Harbor Custom Development, Inc., a Washington corporation (the “Company”), received a notice of event of default for failure to make payment of $8,000,000 of principal and $55,555.56 of prorated interest due on November 25, 2023 pursuant to the Company’s Loan Agreement with Fratelli’s LLC (the “Lender”), dated May 23, 2022 (the “Loan”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1784567/000149315223043906/0001493152-23-043906-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.