What is the contractual maturity date of the PPP-SD loan obtained by Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
(22,819) | | Present value of lease liability | 557,925 | | Less: current portion of lease liability | (105,194) | | Lease liability, net of current portion | $ 452,731 | 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 25, 2024 and December 27, 2023.
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
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the company received a Second-Draw Paycheck Protection Program (PPP-SD) loan on March 16, 2021, for $1,124,900. This loan was obtained from the SBA under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.
The PPP-SD loan carries a stated interest rate of 1% per annum. The contractual maturity date for this loan is March 1, 2026. This means Black Bear Diner is obligated to repay the outstanding balance by this date, assuming the loan is not forgiven in full or part by the SBA.
Black Bear Diner initially recorded the PPP-SD loan as long-term debt, in accordance with ASC 470 - Debt. The company submitted its application for forgiveness of the PPP-SD loan to the SBA during the year ended December 29, 2021, and received partial forgiveness of $999,509. 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.