What amount of the PPP-SD loan received by Black Bear Diner was forgiven by the SBA?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | $ 110,184 | |------------------------------------------|---------------| | 2025 | 113,506 | | 2026 | 116,898 | | 2027 | 120,406 | | 2028 | 124,014 | | Thereafter | 105,920 | | Total minimum lease payments | 690,928 | | Less: imputed interest | (32,865) | | Present value of lease liability | 658,063 | | Less: current portion of lease liability | (100,138) | | Lease liability, net of current portion | $ 557,925 | | | | Litigation: The Company is subject to litigation and pending claims arising in the ordinary course of business. The Company records reserves for such matters when payment is probable, and the amount of a claim is reasonably estimable. The ultimate resolution of pending claims has not had and is not expected to have a material adverse effect on the Company's financial condition, position or cash flows at December 27, 2023 and December 28, 2022.
NOTE 6 - GOVERNMENT ASSISTANCE PROGRAMS
Paycheck Protection Forgivable Program Loans: As a result of the economic uncertainty stemming from the impact of the COVID-19 pandemic, on March 16, 2021, the Company received a Second-Draw Paycheck Protection Program (PPP-SD) loan in the principal amount of $1,124,900 from the SBA in accordance with the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ("Economic Aid Act"). The PPP-SD loan has a stated interest rate of 1% per annum and has a contractual maturity date of March 1, 2026.
The Company has elected to account for its PPP-SD loan as debt in accordance with ASC 470 - Debt.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the company received a Second-Draw Paycheck Protection Program (PPP-SD) loan of $1,124,900 on March 16, 2021. This loan was obtained through the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. The loan carries an interest rate of 1% per annum and has a maturity date of March 1, 2026.
Black Bear Diner accounts for this loan as debt, initially recording the proceeds as long-term debt. The loan balance is recognized as other income only when the SBA legally forgives it. During the year ending December 29, 2021, Black Bear Diner applied for forgiveness of this PPP-SD loan.
The SBA partially forgave $999,509 of the $1,124,900 PPP-SD loan. The remaining balance of the PPP-SD loan is recorded as long-term debt, with the current portion reflected in current liabilities on the balance sheet as of December 25, 2024, and December 27, 2023.