PPP in M&A: How Paycheck Protection Program Loans Could Affect Your Deal
The Small Business Administration recently set rules for dealing with PPP loans in M&A transactions. If either side in a deal has received a PPP loan, the parties must be prepared for increased scrutiny during due diligence, transaction timeline delays and certain valuation implications.
Join us for a webinar on these issues and more, including firsthand perspective from a company that recently completed an acquisition of a PPP loan borrower.
Topics will include:
- What constitutes a “change of ownership” of a PPP borrower and when (and if) SBA approval is needed
- What lenders must submit if prior approval by the SBA is required
- PPP borrower liability
- The effect of an escrow for the amount of a PPP loan
- Timeline for obtaining SBA approval
- Considerations for whether the PPP loan should be repaid or assumed in connection with the closing
Christopher J. Pippett, Partner and Chair, Financial Services Industry Practice, Fox Rothschild LLP
Matthew R. Kittay, Partner and Co-Chair, Mergers & Acquisitions Practice, Fox Rothschild LLP
Madison S. Clemens, Associate, Fox Rothschild LLP
Jamie Wilkerson, VP of Finance, Velocity Clinical Research