The Small Business Administration (SBA) has issued a new notice relating to the Paycheck Protection Program (PPP) loans and change of ownership transaction of a business (borrower). The notice specifies when a change of ownership is considered to have occurred and the responsibilities a PPP borrower continues to have regardless of any change of ownership. This welcomed guidance, particularly with the PPP loan forgiveness delays, outlines the requirements to enter into a change of ownership transaction without defaulting on a PPP loan.
Here is the link to the SBA Procedural Notice.
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