What is the term length of the SBA loan obtained by Aw?
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 term length of this SBA loan is 30 years, with the loan collateralized by the company's assets. The interest rate is 3.75%, and monthly payments of $120 commenced in 2023.
This information is relevant to potential Aw franchisees as it provides insight into the company's financial obligations and how they are structured. Understanding the terms of Aw's SBA loan, such as the interest rate and repayment schedule, can help franchisees assess the financial stability of the company.
The fact that the loan is collateralized by Aw's assets means that the SBA has a secured interest in those assets. This is a common practice in lending, as it provides the lender with additional security in case of default. The monthly payments of $120 are relatively low, which could be seen as a positive sign for the company's cash flow.
Overall, the information about Aw's SBA loan provides a glimpse into the company's financial management and its relationship with lenders. Prospective franchisees may want to further investigate Aw's debt obligations and financial performance to gain a more complete understanding of the company's financial health.