On Saturday, October 3rd the Small Business Administration issued a procedural notice on PPP loans and changes of entity ownership. Need Not Count Under 20% Ownership Transfer or Under 50% Value of Asset TransferAn entity ownership transfer of less than 20% of total ownership does not count. When calculating this 50% threshold, all sales or transfers that have occurred since the date of the borrower’s approval for a PPP loan must be aggregated. The Notice states that:“[i]f any of the new owners or the successor arising from such a transaction has a separate PPP loan, then following consummation of the transaction . the PPP borrower and the new owner(s) are responsible for segregating and delineating PPP funds and expenses and providing documentation to demonstrate compliance with PPP requirements by each PPP borrower[.

Source: Forbes October 05, 2020 00:56 UTC