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Lee Kolodny and Ryan Barncastle spoke during a panel discussion, “Navigating PPP and EIDL loans in M&A Deals and Employee Retention Credits,” hosted by the Association for Corporate Growth (ACG) San Diego. The panel addressed the effect of a transaction on PPP eligibility, areas of focus for a buyer in evaluating a target borrower’s compliance with PPP/EIDL loan terms, practical considerations for how to treat an outstanding PPP/EIDL loan balance in a transaction and issues regarding PPP loan forgiveness arising from a transaction. The panel also covered Employee Retention Credits (ERCs), which hasn’t received much attention, though it was included in the second COVID-19 stimulus. The new law allows business who received a PPP loan to also obtain ERCs. 

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