What was the term length of the Second Draw PPP Loan obtained by Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
In February 2021, the Company received a Second Draw Paycheck Protection Program Loan (the Second Draw PPP Loan) from Enterprise Bank & Trust in the amount of $591,795.
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 the 2025 Pump It Up Franchise Disclosure Document, Pump It Up received a Second Draw Paycheck Protection Program Loan. This loan from Enterprise Bank & Trust was for $591,795 in February 2021.
The FDD specifies that the Second Draw PPP loan had a term of five years and accrued interest at a rate of 1.0% per annum. The loan was unsecured and guaranteed by the SBA (Small Business Administration).
Prospective franchisees should note that while these loans were beneficial for Pump It Up, the SBA may review the funding eligibility and usage of funds to ensure compliance with program requirements. Although management believes any review will not adversely impact the company's financial position, it is important to be aware of potential future audits or reviews by the SBA.