AB 2020 Form 10-K

Secured borrowings outstanding as of December 31, 2020, were as follows: Loan Name Trade Date Maturity Date bps Daily Rate Amount Businessolver.com, Inc. 12/23/2020 60 days or less from trade date 1.25 $ 5,312,058 Medbridge Holdings, LLC 12/23/2020 60 days or less from trade date 1.25 7,710,514 Higginbotham Insurance Agency, Inc. 12/23/2020 60 days or less from trade date 1.25 5,848,284 $18,870,856 As of December 31, 2020 and December 31, 2019 outstanding borrowings under the revolving credit facilities, Notes, and secured borrowings were $360,908,354 and $229,836,633, respectively. For the years ended December 31, 2020, December 31, 2019 and December 31, 2018, the components of interest and other debt expenses related to the borrowings were as follows: For the year ended December 31, 2020 For the year ended December 31, 2019 For the year ended December 31, 2018 Interest and borrowing expenses $ 7,282,854 $ 7,158,340 $ 1,222,642 Commitment fees 125,253 219,021 83,237 Amortization of debt issuance and deferred financing costs 1,208,387 1,088,053 443,423 Total $ 8,616,494 $ 8,465,414 $ 1,749,302 Weighted average interest rate (1) 2.87% 4.39% 4.26% Average outstanding balance $ 254,088,888 $ 163,259,315 $ 28,667,123 (1) Calculated as the amount of the stated interest and borrowing expenses divided by average borrowings during the period. 5. Fair Value Measurement In accordance with ASC 820, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a framework for measuring fair value and a three- level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability as of the reporting date. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below: • Level 1 – Quoted prices in active markets for identical investments. • Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). • Level 3 – Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments at the reporting date). The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. If a fair value measurement uses price data vendors or observable market price quotations, that measurement is a Level 2 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. F-32