PPP Loans and Changes of Ownership: Considerations for M&A Transactions
By EsqSocial Corporation 22/10/20
The Small Business Administration (“SBA”) has issued long-awaited rules governing lender and borrower obligations when there is a change in ownership of an entity that has received a Paycheck Protection Program (“PPP”) loan. The new guidance, issued on October 2, 2020, eliminates the need for SBA approval for many merger or sale transactions, but injects a host of additional procedural and compliance requirements that could create pitfalls for borrowers, buyers and lenders....
By: Nossaman LLP