In an effort to gather supporting information behind Paycheck Protection Program (PPP) loans in excess of $2 million[1], the Small Business Administration (SBA) recently released the following questionnaires:
- Form 3509: Paycheck Protection Program Loan Necessity Questionnaire (For-Profit Borrowers)
- Form 3510: Paycheck Protection Program Loan Necessity Questionnaire (Non-Profit Borrowers)
These questionnaires, which will be administered by the SBA through the PPP lenders, are intended to support the borrowers’ good-faith certification surrounding the economic need for funding pursuant to Sec. 1102 of the CARES Act. As a reminder, PPP borrowers were required to certify “that the uncertainty of the current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient.”
Lenders who have submitted loan forgiveness on behalf of impacted borrowers will receive a request from the SBA for completion of the form. While the instructions indicate that the receipt of the questionnaire does not necessarily mean that the SBA is challenging the good-faith certification, impacted borrowers are required to submit the completed forms within 10 business days of receipt from the lender. Impacted PPP borrowers should reach out to their advisors for assistance with completion of the form, as detailed financial information is required.
Sax will continue to update you as further details are made available. Reach out to your Sax advisor or email covid19@saxllp.com with questions. For more and on-going information relative to your state and business, visit Sax’s COVID-19 Resource Center.
[1] SBA affiliation rules stipulated in 85 FR 20817 apply.