PPP2 FOR NEW ACQUISITIONS??
Since PPP2 eligibility requires applicants to show a 25% YoY quarterly revenue decline from 2019 to 2020, many of us with late[redacted]acquisitions may not have prior year operations for our own entity to establish the baseline (unless it was a stock sale). My thought would be to use my seller's prior year quarterly revenue for comparison, but that's not technically my entity, as my entity was formed as of the acquisition. Any experts who can advise, please?
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]).
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.