Considerations for Nonprofits with Paycheck Protection Program (“PPP”) Loans That Are Looking To Merge or Dissolve

If you’re organization is anticipating a merger or sale of assets with dissolution, and either of the parties to the deal have received a PPP loan, there are important considerations for your nonprofit to keep in mind. On October 2, the SBA released further guidance on what happens to PPP funds where there is a change in company or asset ownership. Read THIS ARTICLE to learn more about how a merger or asset sale could impact PPP loan forgiveness, when SBA approval of the transaction is necessary, and best practices on how to handle PPP funds between two merging organizations.