What is the total reported loan amount for Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
The Corporation also received an SBA Loan of $150,000 on May 18, 2020 as a part of Corona virus relief package. Interest will accrue at the rate of 3.75% per annum on the funds advanced. Interest of $8,041 is paid, while no principal repayments have been made in 2023 for the same.
During the year ended December 31, 2020, Best Brains Inc. a $150,000 loan agreement with the Small Business Administration (SBA). The proceeds of the loan are solely for working capital to alleviate economic injury caused by the Covid 19 virus. The loan bears interest at 3.75% and Interest of $ 8,772 is paid, while no principal repayments have been made in 2024 for the same.
Loan to shareholders includes loan given to Mr. Anil Sunkara amounting to $100,000.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, Best Brains Inc. received an SBA loan of $150,000 on May 18, 2020, as part of a coronavirus relief package. The loan's interest rate is 3.75% per annum. In 2023, Best Brains paid $8,041 in interest, but made no principal repayments. Additionally, during the year ended December 31, 2020, Best Brains Inc. entered into a $150,000 loan agreement with the Small Business Administration (SBA). The proceeds from this loan were specifically designated for working capital to mitigate economic injury caused by the Covid 19 virus. This loan also bears interest at 3.75%. In 2024, Best Brains paid $8,772 in interest on this loan, but again, no principal repayments were made.
Furthermore, the FDD mentions loans to shareholders. As of December 31, 2024, there were outstanding balances of interest-free loans issued to shareholders. Specifically, Mr. Anil Sunkara received a loan of $100,000.
In summary, Best Brains has two SBA loans each for $150,000 and a shareholder loan of $100,000. This means that Best Brains has a total reported loan amount of $400,000.