News & Analysis as of

Change in Control Paycheck Protection Program (PPP)

Lathrop GPM

Considerations for Businesses with Outstanding PPP Loans in M&A Transactions

Lathrop GPM on

On October 2, 2020, the U.S. Small Business Administration (the “SBA”) issued Procedural Notice (5000-20057), titled “Paycheck Protection Program Loans and Changes of Ownership” (the “Notice”). The Notice sets forth the steps...more

Farella Braun + Martel LLP

M&A Deals and PPP Loans: Unexpected Parties in Your Deal

The Payroll Protection Program has been a lifesaver to many businesses this year, but its quick roll out, and many generous features (including potential forgiveness) could tempt a borrower to treat the PPP as something less...more

Miller Canfield

Strategies to Reduce the Impact of the New SBA Procedural Notice on the Rights of a Secured Lender

Miller Canfield on

In the SBA Procedural Notice dated October 2, 2020 (the “Approval Notice”), the Small Business Administration (“SBA”) has issued mandates that may impact the ability of a recipient of a Paycheck Protection Program (“PPP”)...more

Parker Poe Adams & Bernstein LLP

SBA Releases Long-Awaited Guidance on M&A Rules for Paycheck Protection Program Borrowers

The Small Business Administration (SBA) recently released a procedural notice concerning when a borrower of a Paycheck Protection Program (PPP) loan may forgo SBA approval in connection with a merger or acquisition. The...more

BCLP

Buyers’ obligation to assume PPP debt hinges on need for SBA approval

BCLP on

The Small Business Administration recently published a procedural notice on changes of ownership for PPP borrowers. One specific area where we’ve seen confusion is whether the procedural notice requires a buyer to assume all...more

BCLP

Four Things You May Have Missed about the PPP Change of Ownership Notice

BCLP on

As previously discussed, on October 2, 2020, the SBA published Procedural Notice 5000-20057 addressing Paycheck Protection Program Loans and Changes of Ownership. Based on a review of memos on the subject by other law firms...more

Dorsey & Whitney LLP

New Guidance on PPP Loans in M&A

Dorsey & Whitney LLP on

The Paycheck Protection Program (the “PPP”) created under the CARES Act has provided much needed assistance to millions of businesses and other organizations operating in the United States that have been impacted by the...more

Ruder Ware

SBA Issues Guidance on Navigating Paycheck Protection Program Loans in M&A Transactions

Ruder Ware on

After several months of uncertainty, businesses are carefully resuming merger and acquisition transactions. Many (if not most) small businesses took advantage of the Paycheck Protection Program (PPP), but, as forgiveness is...more

BCLP

PPP & Asset Sales: Is the Buyer Required to Assume the PPP Note?

BCLP on

No. On October 2, the Small Business Administration published a procedural notice on changes of ownership for PPP borrowers. One specific area where we’ve seen confusion is whether the procedural notice requires a Buyer to...more

Holland & Knight LLP

SBA Issues Much-Anticipated Guidance Regarding Changes of Ownership in PPP Loans

Holland & Knight LLP on

Unforgiven Paycheck Protection Program (PPP) loans have created a great deal of consternation for PPP borrowers looking to engage in merger and acquisition (M&A) transactions, as well as other asset sale, equity and...more

Nutter McClennen & Fish LLP

PPP: SBA Provides Process for a Change of Ownership

On October 2, 2020, the SBA provided notice to PPP lenders regarding the process by which PPP borrowers may undertake a “change of ownership” while a loan is outstanding. Previously there was little guidance provided to...more

Dorsey & Whitney LLP

PPP Loans and M&A Transactions: New Guidance from the SBA

Dorsey & Whitney LLP on

The Paycheck Protection Program (the “PPP”) created under the CARES Act has provided much needed assistance to millions of businesses and other organizations operating in the United States that have been impacted by the...more

Benesch

SBA Guidance on PPP Loans in the Context of a Sale of a Business

Benesch on

On October 2, 2020, the SBA released a guidance relating to whether the SBA will be required to consent to a “change in ownership” of a business. A “change in ownership” is deemed to be any of the following...more

Tucker Arensberg, P.C.

Small Business Administration Provides Guidance for Change of Ownership When a Seller Has a PPP Loan

Tucker Arensberg, P.C. on

The last few months have been full of questions with no answers for companies with outstanding Paycheck Protection Program (“PPP”) loans who are interested in selling their business. Did transfer of their assets or sale of...more

BCLP

SBA Provides Guidance on Changes of Ownership of PPP Borrowers

BCLP on

On October 2, 2020, the SBA Office of Capital Access published Procedural Notice 5000-20057, which provides a framework to address whether SBA pre-approval is required for various changes of ownership under the Paycheck...more

BCLP

PPP: Does a Borrower need its Lender’s Consent to a Change in Control Transaction?

BCLP on

Nothing in the CARES Act, Interim Final Rules, or Frequently Asked Questions currently requires Lender’s Consent in connection with a change in control transaction. However, the specific terms of the PPP Note signed by the...more

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