What was the amount of the Gain on CARES Act Loan Forgiveness for Benihana in 2021?

According to Benihana's 2024 Franchise Disclosure Document, the company recognized a gain on CARES Act Loan forgiveness of $18.5 million for the year ended December 31, 2021. This gain resulted from the forgiveness of loans obtained under the Paycheck Protection Program (PPP) created by the CARES Act. These loans were initially taken out on May 4, 2020, by two of Benihana's subsidiaries. The ONE Group, LLC received $9.8 million related to STK restaurants, and Kona Grill Acquisition, LLC received $8.5 million related to Kona Grill restaurants.

The CARES Act Loans were eligible for forgiveness if the proceeds were used for qualified purposes, with at least 60% spent on payroll costs. Benihana states that it used all the proceeds for qualified purposes, supporting the reopening of in-person dining and the return of approximately 3,000 furloughed employees. The company applied for forgiveness in February 2021, and the loans were forgiven between June and July 2021.

For a prospective Benihana franchisee, this information provides insight into how the company managed financial relief programs during the COVID-19 pandemic. The loan forgiveness contributed to Benihana's financial performance in 2021. While this specific event is in the past, it demonstrates the company's ability to leverage available resources and manage its financial obligations. The table included in the excerpt also shows a comparison of financial data between 2020 and 2021, highlighting the impact of the loan forgiveness on the company's overall financial health.