What was the interest rate on the Paycheck Protection Program note payable for Cinch I.T.?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
potential examination by taxing authorities for the year ended 2021.
3. LONG-TERM DEBT
Long-term debt consists of the following at December 31:
| 20 | 121 | - 9 | 2020 | ||
|---|---|---|---|---|---|
| Paycheck Protection Program note payable, with 1.00 percent interest, unsecured, payable in monthly installments of principal and inter |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Paycheck Protection Program note payable had an interest rate of 1.00 percent. The note was unsecured and payable in monthly installments of principal and interest of $2,008. The note was forgiven in June 2021. The original amount of the loan was $17,997.
This information is relevant to prospective franchisees as it provides insight into how Cinch I.T. managed its finances during the COVID-19 pandemic. The company's ability to secure and manage a PPP loan, and subsequently have it forgiven, demonstrates financial acumen and responsibility.
While this specific loan is no longer outstanding, it serves as an example of the company's approach to financial management and its ability to leverage available resources. Franchisees may find this reassuring, as it suggests that Cinch I.T. is proactive in seeking financial opportunities and managing its obligations.