Under what act was the Paycheck Protection Program established, which Beehive Homes utilized?
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 Paycheck Protection Program (PPP) was established under the Coronavirus Aid, Relief and Economic Security Act, as amended, also known as the CARES Act. Beehive Homes received a PPP loan of approximately $171,300 on April 24, 2020.
The CARES Act allowed PPP loan recipients to apply for loan forgiveness, with the potential forgiveness amount determined by how the loan proceeds were used over the 24 weeks following disbursement. Specifically, the funds had to be used for payroll costs, mortgage interest, rent, and utilities. The amount of forgiveness would be reduced if recipients terminated employees or reduced salaries during that period.
Beehive Homes also received a second PPP loan on February 17, 2021, for $153,647, which was subject to the same forgiveness terms as the first loan. The unforgiven portion of the first 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 loan was payable over five years at a 1% interest rate, with payments deferred for the first sixteen months. On January 5, 2022, Beehive Homes was notified that the SBA had granted forgiveness on the PPP loan, and the company recognized this forgiveness as revenue within 2022.