Can you transfer a PPP loan?
The SBA’s prior consent to the change of ownership transaction of the PPP borrower will not be required if the sale or transfer of equity is 50% or less of the total equity of the PPP borrower or if less than 50% of the PPP borrower’s assets are sold or transferred.
Can an SBA loan be transferred?
A 7(a) lender may assign, or in other words, transfer, all or a portion of its interest in a SBA loan to another 7(a) lender. An assignment may occur because the borrower requests for the SBA loan to be transferred to another lender, and the lender agrees.
Can my PPP loan be forgiven if I sell my business?
The PPP loan needs to be forgiven in full or to the maximum amount that will be forgiven before the change of ownership transaction closing. If you are selling an aggregate of 50% or less in a stock sale (since the approval of the PPP loan), you do not need to do anything and can move forward with the transaction.
What happens if I sell my business before my PPP loan is forgiven?
There are no restrictions on transactions where prior to closing the PPP Loan is paid in full or the borrower has received forgiveness (or a combination of the two), or where less than 20% of the ownership interest changes hands, or where less than 50% of the assets are transferred.
What happens to my SBA loan if I sell my business?
If your business is valued for more than you owe on the loan with the bank, you can sell your business and use the proceeds to pay off the loan in full. Straightforward as this may be, do not proceed without first getting your bank’s approval.
Can I sell my business if I have an SBA loan?
Can I sell the business? Yes, you can sell the business. Keep in mind that 100% of the proceeds must go to the bank to pay down the loan balance.
Can I sell my business if I have an EIDL loan?
Yes, you can sell your business if you received or your business received an SBA EDIL loan, but you need to ask permission from the SBA, you need authorization from the SBA in order to sell your business.