BLUE DOLPHIN ENERGY CO : 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.

On May 11, 2021, Blue Dolphin Energy Company executed the standard loan documents required to secure an Economic Injury Disaster Loan ("EIDL") through the Small Business Administration ("SBA") for COVID-19 pandemic relief. The principal amount of the loan is $500,000.00. Proceeds will be used for working capital purposes. Interest on the loan accrues at the rate of 3.75% per annum and will accrue from the date of loan. Installment payments, including principal and interest, total $2,505.00 per month and are due beginning eighteen (18) months from the date of the loan. The balance of principal and interest is payable over a 30-year term. SBA EIDLs are not forgivable. Jonathan Carroll, the company's chief executive officer, and Lazarus Energy Holdings, LLC, an affiliate, provided guarantees of the debt. The debt is subject to certain customary covenants and default provisions.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

See Item 1.01 above for a description of the SBA COVID-19 EIDL.

Item 9.01 Financial Statements and Exhibits.

(d)

Exhibits.

10.1 Loan Authorization and Agreement between Blue Dolphin Energy Company

and the Small Business Administration dated May 11, 2021.

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