When did Black Bear Diner submit its applications for forgiveness of the PPP-SD loan to the SBA?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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 submitted its applications for forgiveness of the Second-Draw Paycheck Protection Program (PPP-SD) loan to the SBA during the year ended December 29, 2021. The company received a partial forgiveness of $999,509 of the PPP-SD loan.
This means that Black Bear Diner sought forgiveness for the loan they received as part of the government's COVID-19 relief efforts in 2021. While they applied for full forgiveness, they only received partial forgiveness. 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.
For a prospective franchisee, this indicates that Black Bear Diner took advantage of government assistance programs during the pandemic and has managed its debt. However, it's important to note that the company did not receive full forgiveness and still carries a remaining balance on the loan. Franchisees may want to inquire about the terms of the remaining loan and how it might affect the company's financial stability.