What is the maturity date for the note payable agreement between Itan and Northeast Bank?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
On February 12, 2021 the Company entered into a note payable agreement with Northeast Bank for $74,517, pursuant to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The note matures two years from the disbursement date and bears interest at a rate of 1.000% per annum, with the first six months of interest deferred. Principal and interest are payable monthly commencing six months after the disbursement date and may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP.
On February 7, 2022, the Company received forgiveness for the full portion of the PPP loan above.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, on February 12, 2021, Itan entered into a note payable agreement with Northeast Bank for $74,517 as part of the Paycheck Protection Program (PPP). The note's maturity date was set for two years from the disbursement date.
This means the note would have matured on February 12, 2023. The agreement included an annual interest rate of 1.000%, with the first six months of interest deferred. Payments for principal and interest were scheduled to begin six months after the disbursement date.
However, the document also states that on February 7, 2022, Itan received forgiveness for the full amount of the PPP loan. Therefore, while the original maturity date was February 12, 2023, the loan was effectively resolved much earlier due to the forgiveness.