On Friday, October 2nd, the Small Business Administration released an SBA Procedural Notice to provide detailed information concerning the required procedures for changes of ownership of an entity that has received PPP funds. Some businesses that have received PPP funds have cause for concern about entering into transactions on either the sell or buy side with parties that have also received PPP funds and how that will ultimately impact loan forgiveness.
Specifically the Procedural Notices addresses:
- Cases in which SBA prior approval is not required.
- Cases in which SBA prior approval is required.
- All sales or other transfers of common stock or other ownership interest or mergers, whether or not the sale requires SBA's prior approval.
To read the full release, click here.
We are keeping up-to-date as new legislation and provisions are passed and are committed to keeping our clients well-informed. If you have any questions, or need any assistance, please don’t hesitate to reach out.