SBA Announces New Requirements for Recipients of PPP Loans of $2 Million or Greater
The SBA has implemented new requirements for borrowers who received Payroll Protection Program (PPP) loans with an original principal amount of $2 million or greater. Two new PPP Loan Necessity Questionnaire forms have been created by the SBA to facilitate the collection of supplemental information that will be used by SBA loan reviewers to evaluate the good-faith certification that borrowers made on their PPP Borrower Application.
The forms, SBA Form 3509, Paycheck Protection Program Loan Necessity Questionnaire (For-Profit Borrowers) and SBA Form 3510, Paycheck Protection Program Loan Necessity Questionnaire (Non-Profit Borrowers), are being provided to lenders.
The form instructions indicate that borrowers who received PPP loans of $2 million will be required to submit the completed loan necessity questionnaire and required supporting documentation to the lender servicing their PPP loan within 10 business days of receiving the notice from the lender.
According to the SBA form instructions, “failure to complete the form and provide the required supporting documents may result in SBA’s determination that the borrower is ineligible for either the PPP loan, the PPP loan amount, or any forgiveness amount claimed, and SBA may seek repayment of the loan or pursue other available remedies.”
The forms require borrowers to provide information about business activity (including gross revenue comparisons between Q2 2020 and Q2 2019) and liquidity.
Additional guidance on these forms is expected from the SBA.