Generally, the Small Business Administration (SBA) and Paycheck Protection Program (PPP) lenders must consent to certain changes in a borrower’s ownership that occur within one year of the borrower’s PPP loan disbursement. Failure to obtain the necessary consent could prove costly for a borrower, as PPP lenders and the SBA ong other remedies, deny PPP loan forgiveness applications, declare the full PPP loan immediately due and payable, and even hold the borrower’s successor liable for the PPP loan funds.

Until recently, borrowers were left guessing at what was meant by a change of ownership transaction. On , the SBA released guidance that provided further clarity on changes of ownership and how to obtain PPP lender and SBA consent. Continue reading “What You Need to Know About PPP and Change of Business Ownership”