I am looking at a possible merger or common ownership of two companies. Target 1 would be 100% acquired. Target 2 would be partially acquired, whereby the existing owner/CEO would stay on and retain control. Target 2 has an existing SBA loan. Is it possible to retain this loan outstanding (the Target 2 owner/CEO would keep his PG) while we either A) together with the owner/CEO of Target 2 own both businesses under a common parent entity or 2) merge the two targets.

The owner of Target 2 would be the CEO of the two companies going forward and he would retain 50-60% ownership in the combined entities.

Can we keep the SBA loan in this scenario? Also, is there a PG requirement for us as a new investor or could we be disqualified if the source of capital is from a HNW family?