PPP loans we’ve seen include an event of default for the loan where the company “[r]eorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent;”. This creates a potential issue where a company has a PPP loan pending forgiveness and an overlapping M&A deal that is pending.

https://insights.colliganlaw.com/post/102g6nb/ppp-loan-impact-on-mergers-and-acquisitions