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Posts tagged as “Paycheck Protection Program”

SBA Procedural Notice o Sale of Business or Assets and PPP


On October 2, 2020, the Small Business Administration issued a five page Procedural Notice 5000-20057 regarding “change of ownership”.  This is a very concerning topic at this point in the game as many companies have changed ownership in one form or another due to the slow-down, since receiving their PPP funding.  Here is what is considered a change of ownership; 1.      20% or more of the common stock or ownership interest is sold or transferred, including to an affiliate or an existing owner of the entity, 2.      50% or more of the assets (measured by FMV) is sold or transferred, whether in…

Paycheck Protection Program (PPP) Forgiveness Part II


The Small Business Administration (SBA) has released the Loan Forgiveness Application, which has provided answers to many previously-vague conditions of forgiveness.  One problem is that for many, these instructions come towards the end of their eight-week loan proceeds spending and may be too late.  I saw one article state that the loan application failed to provide instructions as to how to build a time machine to go back in time to correct what might have already been done.  We may see a spike in Delorean resales! Rather than repeat what I have provided in the first article , I…

SBA Paycheck Protection Program (PPP) Loan Forgiveness


The Paycheck Protection Program (PPP) of the CARES Act authorizes up to $349 billion in loans to small businesses to pay their employees and other expenses during the COVID-19 crisis. The loan amounts will be forgiven under Section 1106 of the Act as long as certain conditions are met, and knowing those conditions at the start of the loan process is crucial, because if you wait until the end of the process, it will be too late. There are four areas of concern to receive 100% forgiveness. 1. Let’s start with what the proceeds can be used for. Over the…