It has now been almost a year since the CARES Act was passed in response to the COVID-19 pandemic and many companies have taken Paycheck Protection Program (PPP) loans authorized under the CARES Act to help them stay afloat. Some of those same companies are now applying for—or are considering applying for—second-draw PPP loans authorized under the most recent COVID economic relief legislation passed in December 2020. While the PPP loan program has been a much-needed lifeline for many companies, there have also been some unexpected challenges with the program. One of those challenges is the SBA’s change in ownership rules. These rules can be particularly tricky for start-up companies that are often targets in M&A transactions and may depend on raising capital to stay in business until they become profitable.

Wilson Sonsini and Silicon Valley Bank invite you to view a webinar discussing these issues and more.