Since the inception of the Paycheck Protection Program (the “PPP”), there has been a lot of ambiguity as to the requirements for PPP borrowers looking to engage in M&A transactions and equity sales. To resolve the ambiguity, on October 2, 2020, the Small Business Administration (the “SBA”) released new guidance, in the form of Procedural Notice No. 5000-20057 (the “Notice”), which provides much needed clarity around the specific requirements for lenders or the SBA to provide consent to PPP borrowers looking to engage in such transactions and the resulting treatment of the underlying PPP loan. Learn more in this Client Alert written by Freeborn Partner, Anthony Zeoli.
