12. Loan payables

 

A summary of the Company’s loans was listed as follows:

 

Lender  Due date  April 30,
2025
   April 30,
2024
 
            
U.S. Small Business Administration  June 15, 2050   2,616,050    2,561,299 
Total loan payables      2,616,050    2,561,299 
Current portion of loan payables      (62,212)   (65,098)
Non-current loan payables     $2,553,838   $2,496,201 

U.S. Small Business Administration (the “SBA”)

 

Borrower  Due date  April 30,
2025
   April 30,
2024
 
Maison Monrovia  June 15, 2050  $150,000   $145,071 
Maison San Gabriel  June 15, 2050   1,967,874    1,933,394 
Maison El Monte  June 15, 2050   498,176    482,834 
Total SBA loan payables     $2,616,050   $2,561,299 

 

On June 15, 2020, Maison Monrovia entered into a $150,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050.

 

On June 15, 2020, Maison San Gabriel entered into a $150,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050. On January 12, 2022, Maison San Gabriel entered into an additional $1,850,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050.

 

On June 15, 2020, Maison El Monte entered into a $150,000 Business Loan Agreement with SBA at 3.75% annual interest rate and a maturity date on June 15, 2050. On January 6, 2022, Maison El Monte entered into an additional $350,000 Business Loan Agreement with the SBA at 3.75% annual interest rate and a maturity date on June 15, 2050.

 

Per the SBA loan agreement, all interest payments on these three loans were deferred to December 2022. As of April 30, 2025 and 2024, the Company’s aggregate balance on the three SBA loans was $2,616,051 and $2,561,299, respectively. During the year ended April 30, 2025 and 2024, the Company made aggregate repayment of the SBA loans of $156,120 and $156,120 (which includes principal of and interest expense).

 

As of April 30, 2025, the future minimum principal amount of loan payments to be paid by year were as follows:

 

Year Ending April 30,  Amount 
     
2026  $62,212 
2027   62,212 
2028   62,212 
2029   62,212 
2030   62,212 
Thereafter   2,304,990 
Total  $2,616,050 

Historical Timeline

Fiscal YearFiled
2025Aug 14, 2025Showing above
2024Aug 13, 2024

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.