What was the amount of the second forgivable loan that Cinch I.T. received in 2021?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
nt. The Company received forgiveness of debt in the amount of $17,997 in June 2021, which has been recognized as extraordinary income due to the unprecedented nature of COVID-19.
The Company applied for and was awarded a second forgivable loan of $60,138 in 2021 from the program. As of December 31, 202
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the company received a second forgivable loan in 2021. Specifically, Cinch I.T. was awarded $60,138 under a program related to the CARES Act. This loan was intended to provide financial relief during the COVID-19 pandemic.
As of December 31, 2021, Cinch I.T. applied for and received forgiveness for the full amount of this loan, $60,138. This forgiveness was then recognized as extraordinary income on the company's financial statements. This means that Cinch I.T. did not have to repay the loan, and it was treated as additional income for accounting purposes.
For a prospective franchisee, this information provides insight into how Cinch I.T. managed its finances during the pandemic and took advantage of available government assistance programs. While this specific loan is a one-time event, it demonstrates the company's ability to seek and obtain financial resources, which could be a positive indicator for potential franchisees.