When did Aw's monthly payments of $120 on the SBA loan begin?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
was $51,502 and $51,502 respectively. These non-interest-bearing loans are unsecured and due on demand.
6. LOAN PAYABLE SBA
During 2020 the Company obtained a note payable of $25,900 from the US Small Business Administration (SBA). This note is collateralize
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company obtained a note payable of $25,900 from the US Small Business Administration (SBA) in 2020. The note is collateralized by the company's assets and bears an interest rate of 3.75% with a term of 30 years. The FDD states that monthly payments of $120 are scheduled to begin in 2023.
This means that Aw began making monthly payments of $120 on the SBA loan in 2023. This information is relevant to potential franchisees as it provides insight into the company's financial obligations and debt management. Understanding the terms and repayment schedule of Aw's SBA loan can help franchisees assess the financial stability of the company.
It is important to note that the loan is collateralized by the assets of Aw, which could have implications for franchisees in the event of financial distress or default by the company. Prospective franchisees should carefully review Aw's financial statements and consult with a financial advisor to fully understand the risks and obligations associated with the SBA loan and its potential impact on the franchise system.