Many credit/loan agreements contain express prohibitions against borrowers incurring additional indebtedness. These agreements often also include financial covenants that could be breached by the incurrence of additional indebtedness. For participants in PPP loans with existing credit/loan agreements, this Alert advises them to immediately reach out to their lenders and seek to amend to their agreements so as to avoid, or obtain a waiver of, any breach thereunder arising out of their obtaining a PPP Loan. The Alert can be found here.
Client Alert: Interfacing PPP Loans with Existing Credit/Loan Agreements – May 19, 2020
