At Blue & Co. LLC, we continue to monitor and disseminate impactful information to our clients in connection with their PPP loans advanced through the SBA in connection with the CARES Act.
Some clients that have received PPP funds have raised concerns 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 forgiveness on the loans. On Friday, October 2nd, the SBA released a SBA Procedural Notice detailing the impact concerning the required procedures for changes of ownership of an entity that has received PPP funds. 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.
If you would like additional information or further discussion on how this impacts your organization, please contact your local Blue & Co. advisor.