SBA releases guidance addressing impact of PPP loans on corporate M&A

Many companies have been asking about the impact of a Paycheck Protection Program (PPP) Loan and the right to forgiveness in connection with corporate M&A transactions, such as a change of control, asset sale or other equity transaction. On October 2, 2020, the SBA released an SBA Procedural Notice to establish the procedures that companies must follow to close a corporate M&A transaction when the seller has an outstanding PPP loan. The SBA’s guidance removes the requirement for SBA approval…