What was the approximate amount of the Paycheck Protection Program loan received by Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Program Loan Payable
On April 24, 2020, the Company received loan proceeds in the amount of approximately $171,300 under the Paycheck Protection Program ("PPP"). The PPP was established under the Coronavirus Aid, Relief and Economic Security Act, as amended ("CARES Act") and is administered by the U.S. Small Business Administration ("SBA"). Under the terms of the CARES Act, PPP loan recipients can apply for loan forgiveness. The potential loan forgiveness for all or a portion of PPP loans is determined, subject to limitations, based on the use of loan proceeds over the 24-weeks after the loan proceeds are disbursed for payment of payroll costs and any payments of mortgage interest, rent, and utilities. The amount of loan forgiveness will be reduced if PPP loan recipients terminate employees or reduce salaries during the covered period. The unforgiven portion of the PPP Loan, if any, is payable over two years at an interest rate of 1%, with a deferral of payments for the first ten months.
Note E - Paycheck Protection Program Loan Payable (continued)
On February 17, 2021 the Company received a second Paycheck Protection Program loan in the amount of $153,647, subject to the same terms of forgiveness as the loan mentioned above. The unforgiven portion of the loan, if any, is payable over five years at an interest rate of 1%, with a deferral of payments for the first sixteen months. On January 5, 2022 the Company was notified by their bank that the SBA had granted forgiveness on the PPP loan based on their application. The Company recognized the forgiveness a
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the company received two Paycheck Protection Program (PPP) loans. The first loan, received on April 24, 2020, was for approximately $171,300. A second PPP loan was received on February 17, 2021, in the amount of $153,647.
Both loans were subject to the terms of the CARES Act, which allowed PPP loan recipients to apply for loan forgiveness. The potential forgiveness was based on how the loan proceeds were used over a 24-week period following disbursement, specifically for payroll costs, mortgage interest, rent, and utilities. The amount of forgiveness would be reduced if the company terminated employees or reduced salaries during the covered period.
The unforgiven portion of the first PPP loan was payable over two years at a 1% interest rate, with payments deferred for the first ten months. The unforgiven portion of the second PPP loan was payable over five years at a 1% interest rate, with payments deferred for the first sixteen months. Beehive Homes was notified on January 5, 2022, that the SBA had granted forgiveness on the PPP loan, and the company recognized the forgiveness as revenue within 2022.