What was the original amount of the SBA loan that Best Brains received on May 18, 2020?
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 corporation received an SBA loan on May 18, 2020, as part of a coronavirus relief package. The original amount of the SBA loan was $150,000. Interest accrues on this loan at an annual rate of 3.75%.
The FDD indicates that Best Brains paid $8,041 in interest during 2023 and $8,772 in 2024, but made no principal repayments on the loan during either of those years. The loan's proceeds were specifically intended for working capital to help alleviate economic injury caused by the Covid-19 virus.
Prospective franchisees should note that while this loan was obtained by Best Brains Inc., it provides insight into the company's financial management and its response to economic challenges. Understanding the terms and repayment status of such loans can be a useful part of due diligence when evaluating the financial stability of the franchisor.