PPP Forgiveness

by a searcher from Harvard University - Harvard Business School

3 years ago

I am looking at an acquisition where the owner received a PPP loan in April.  The business has met all criteria for forgiveness.  Has anyone looked at an acquisition with an existing PPP loan?  If I buy all the assets can the previous owner still apply for forgiveness?  

Thinking about structuring the forgiveness as a gift to the owner and 'splitting' the difference if they unable to get forgiveness.  

Thanks

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14 comments

investor from University of Virginia

I'm not sure anyone really knows the answer, but on a deal we are working on our lender's law firm is saying the seller (asset deal) must escrow funds equal to the PPP balance at closing, and potentially the PPP lender will need to also approve the deal...

3 years ago | like reply | 4 likes

investor from University of Maryland at College Park

Review loan docs from lender. Transfer of ownership generally needs to be approved by lender otherwise forgiveness may not be guaranteed.

3 years ago | like reply | 2 likes

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