Here we go again! More 11th hour changes to the PPP rules. These new changes can strap a business down and take away its options — options a company might very much need to survive COVID-19.
On Friday, October 2, the SBA issued more procedural rules. This time, any PPP loan recipient with an unpaid balance has its hands tied if it wants to sell, transfer, or merge its business or add owners. The lender and SBA now have the power to drag out the sale (transfer or owner shift) and demand compliance with up-’til-now wholly unknown protocol.
One more thing. Have you ever looked at the terms of an actual PPP promissory note? We have — interesting stuff. In due respect, most PPP borrowers don’t have a clue. The SBA keeps adding rules that automatically get included.
Bradley Burnett is a practicing Colorado attorney with 33 years of experience working specifically on tax issues. His practice specializes in tax planning and tax controversy resolution. Mr. Burnett has authored and delivered more than 3,000 presentations on U.S. tax law in the U.S. and international jurisdictions.