What was the term length of the original PPP Loans obtained by Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The PPP Loans and Second Draw PPP Loan were used to fund payroll, rent, utilities, and interest on existing debt through the Paycheck Protection Program. The PPP loans accrued interest at 1.0% per annum, had a term of two years, and were unsecured and guaranteed by the SBA. The Second Draw PPP loan accrued interest at 1.0% per annum, had a term of five years, and was unsecured and guaranteed by the SBA. The SBA may subsequently review funding eligibility and usage of funds for compliance with program requirements and other factors. Management believes that any subsequent review will not have an adverse impact on the Company's financial position.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the company received five Paycheck Protection Program Loans in April 2020. These PPP Loans had a term of two years. The loans accrued interest at a rate of 1.0% per annum and were unsecured and guaranteed by the SBA.
In February 2021, Pump It Up also received a Second Draw PPP Loan, which had a term of five years and the same interest rate and guarantee conditions as the original PPP Loans. The original PPP Loans totaled $989,900, while the Second Draw PPP Loan amounted to $591,795.
The FDD also notes that in August 2021 and January 2022, Pump It Up received notifications from the SBA that the original PPP Loans had been forgiven. The company recorded the forgiveness income for these loans as other income in its consolidated statement of operations.