What is the payment deferral period for the Beehive Homes Paycheck Protection Program loan?
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 the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes received two Paycheck Protection Program (PPP) loans. The first PPP loan, received on April 24, 2020, was for approximately $171,300. If any portion of this loan was not forgiven, the repayment terms included a deferral of payments for the first ten months, with the unforgiven amount payable over two years at a 1% interest rate.
The second PPP loan, received on February 17, 2021, amounted to $153,647. The terms for any unforgiven portion of this second loan included a deferral of payments for the first sixteen months, with the balance payable over five years at a 1% interest rate. The document states that on January 5, 2022, Beehive Homes was notified that the SBA had granted forgiveness on the first PPP loan, and the company recognized this forgiveness as revenue within 2022.
For a prospective Beehive Homes franchisee, this information is relevant in understanding the company's financial management and how it handled government assistance programs during the pandemic. While these loans were obtained by Beehive Homes, Inc. and not individual franchisees, it provides insight into the company's financial practices and its ability to manage debt and take advantage of available relief programs. This can be a useful indicator of the franchisor's overall financial acumen.