How much interest did Best Brains pay on its SBA loan in 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
ventory consisting of books and materials has been stated at lower of cost (first-in first- out method) or net realizable value.
NOTE 7- EXPENDITURE/ INCOME IN FOREIGN CURRENCY
Payments received from BB Canada Inc for materials sent to them converted into USD amounted to $180,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the company received an SBA loan of $150,000 on May 18, 2020, as part of the Coronavirus relief package. The interest rate on this loan is 3.75% per annum. In 2023, Best Brains paid $8,041 in interest on this SBA loan. No principal repayments were made during that year.
This information is relevant for prospective franchisees as it provides insight into Best Brains' financial obligations and how they manage their debt. Understanding the terms of the SBA loan, such as the interest rate and repayment schedule, can help franchisees assess the financial stability of the franchisor. It also demonstrates the company's ability to secure and manage loans, which can be a factor in its overall success and support for franchisees.
It's important to note that the loan was obtained as part of a COVID-19 relief package, indicating that Best Brains, like many businesses, was impacted by the pandemic. The fact that they were able to secure this loan could be seen as a positive sign of their ability to navigate challenging economic conditions. However, prospective franchisees should also consider how the ongoing debt obligations might affect the franchisor's ability to invest in new initiatives or support existing franchisees.