SBA Procedural Notice 5000-20057 on Paycheck Protection Program Loans and Changes of Ownership was recently released by SBA, click here to read.

The following are important issues to consider with proposed changes of ownership:

  • Stock Transfer vs. Asset Sale
  • Partial Change of Ownership vs. Full Change of Ownership
  • Review of Purchase Agreement
  • SBA Approval vs. Escrow Accounts
  • Status of PPP Loan Forgiveness Application
  • Use of SBA Loans to Fund Change of Ownership

We expect that there will continue to be further guidance and clarification which we will continue to provide as they become available.