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Tagging a few Searchfunders and searcher-friendly advisors who have posted or commented on PPP in the past and might be able to answer your questions here: ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌ (To our commenters, THANK YOU in advance for helping to make Searchfunder a collaborative community. We are pleased to announced that BVR Deal Stats will be available to all user categories in a matter of days. More good things to come in 2021! With Best Wishes, ^[redacted]‌).

I believe they amended the initial PPP loans to account for new entities that were created from an asset acquisition, I would assume they will have similar language for round 2.

Done that. Contact me at [redacted]

Here's what is in the SBA's[redacted]PPP FAQ. While it was written before PPP2 and the quarterly test, it does provide some guidance as to how they were looking at it in 2020.

38. Question: Section 1102 of the CARES Act provides that PPP loans are available only to
applicants that were “in operation on February 15, 2020.” Is a business that was in
operation on February 15, 2020 but had a change in ownership after February 15, 2020
eligible for a PPP loan?

Answer: Yes. As long as the business was in operation on February 15, 2020, if it meets
the other eligibility criteria, the business is eligible to apply for a PPP loan regardless of
the change in ownership. In addition, where there is a change in ownership effectuated
through a purchase of substantially all assets of a business that was in operation on
February 15, the business acquiring the assets will be eligible to apply for a PPP loan
even if the change in ownership results in the assignment of a new tax ID number and
even if the acquiring business was not in operation until after February 15, 2020. If the
acquiring business has maintained the operations of the pre-sale business, the acquiring
business may rely on the historic payroll costs and headcount of the pre-sale business for
the purposes of its PPP application, except where the pre-sale business had applied for
and received a PPP loan. The Administrator, in consultation with the Secretary, has
determined that the requirement that a business “was in operation on February 15, 2020”
should be applied based on the economic realities of the business’s operations.

^[redacted]‌ The language sounds like transfer of ownership of a business (e.g., a stock sale). In case of an asset sale, which is most common in acquisition, will have a new entity formed and purchasing the assets of the old business entity. Is this response still applicable for such asset sale closing now?

Hi ^[redacted]‌, yes, in their language, it appears it was meant to apply to an asset sale where they mention "effectuated through a purchase of substantially all of the assets" and also their reference "even if the change of ownership results in a new tax ID number [aka EIN]". Both of those would be indicative of an asset sale. Hope that helps!

^[redacted]‌ Thank you so much for the info. Do you know where I can find the details of what is considered payroll costs for the purpose of determining the loan amount? Specifically interested in knowing if union benefits, 401K employer contributions and non-union group health count as payroll costs?

^[redacted]‌ - check out Section 4 "I have determined that I am eligible. How much can I borrow?", page 31 of: https://home.treasury.gov/system/files/136/PPP-IFR-Paycheck-Protection-Program-as-Amended-by-Economic-Aid-Act.pdf. It is the beginning of a very detailed explanation.

For Second Draw PPP loans, also see Section A. Eligibility requirements, starting on page 5 of: https://home.treasury.gov/system/files/136/PPP-IFR-Second-Draw-Loans.pdf

^[redacted]‌ You are awesome! Thank you.

^[redacted]‌ Thanks for the links above! The language in the PPP 2nd Draw document, on page 23 section B, refers to acquisitions in 2020 being eligible relative to this posts prompt. I acquired my company in Q2[redacted]does the same apply for 2019 acquisitions and then comparing Q1[redacted]old company) to Q1[redacted]NewCo) quarters to show the revenue decline? I couldnt find anything that specifically addressed that scenario.