ARC GROUP, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)

Item 1.01 Entry Into a Material Definitive Agreement.

Between April 15, 2020 and April 17, 2020, ARC Group, Inc. (the "Company") and each of ARC WingHouse, LLC, Seediv, LLC, ARC Fat Patty's, LLC, DWAG Tallahassee, LLC, DWAG Valdosta, LLC, which are subsidiaries of the Company (together with the Company, the "Borrowers"), executed loan documents for loans (the "Loans") in the aggregate amount of $6,064,560 for which City National Bank of Florida ("City National Bank") served as lender pursuant to the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") as administered by the U.S. Small Business Administration (the "SBA"). On April 19, 2020, the Company learned that the Loans had been funded and closed.

The Loans were evidenced by promissory notes issued by the Borrowers in favor of City National Bank (the "Notes"). The Notes have a term of two years and bear interest at a rate of one percent (1%) per year. Monthly principal and interest payments will commence on the six-month anniversary of the Loans. The Borrowers may prepay the Loans at any time without incurring any prepayment penalties. Under the terms of the Loans, up to the entire amount of principal and accrued interest may be forgiven to the extent the proceeds of the Loans are used for qualifying expenses as described in the CARES Act and applicable implementing guidance issued by the SBA. The Promissory Notes provides for customary events of default, including, among others, those relating to failure to make payment, bankruptcy, breaches of representations and material adverse effects.

The foregoing description of the Notes does not purport to be complete and is qualified in its entirety by reference to the Notes, copies of which are attached hereto as Exhibits 10.1,10.2, 10.3, 10.4, 10.5 and 10.6, respectively, and incorporated by reference herein.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an

          Off-Balance Sheet Arrangement of a Registrant.

The information contained in Item 1.01 above is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

  (d) Exhibits.




  10.1   Note, dated April 16, 2020, by and between ARC Group, Inc. and City
       National Bank of Florida

  10.2   Note, dated April 16, 2020, by and between ARC WingHouse, LLC and City
       National Bank of Florida

  10.3   Note, dated April 16, 2020, by and between ARC Fat Patty's, LLC and City
       National Bank of Florida

  10.4   Note, dated April 17, 2020, by and between Seediv, LLC and City National
       Bank of Florida

  10.5   Note, dated April 15, 2020, by and between DWAG Tallahassee, LLC and City
       National Bank of Florida

  10.6   Note, dated April 15, 2020, by and between DWAG Valdosta, LLC and City
       National Bank of Florida

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