|01:00 PM - 02:30 PM ET|
Finance partners Matthew Edward Schernecke and Andrew Budreika, and Corporate Business Transactions associate Andrew Rocks presented in a Strafford live webinar, "PPP Financing in M&A Transactions." The Paycheck Protection Program (PPP) and other CARES Act loan programs implemented in response to the COVID-19 pandemic have various implications on pending and potential M&A transactions. The unique features of the PPP loans in particular and the volume of such loans in the marketplace have resulted in novel issues for M&A practitioners.
During this 90-minute program, the panel provided an overview of the factors to consider in structuring, negotiating, and executing an M&A deal involving a PPP loan. The panel also discussed key issues such as how to treat an outstanding PPP loan balance in a transaction, issues regarding loan forgiveness, and the importance of evaluating and addressing risk regarding a target borrower's compliance with PPP loan terms.
Other key considerations that were addressed include: