SBA Announces Loan Necessity Questionnaire for PPP Borrowers of $2M or More

November 13, 2020

On October 26, 2020, the Small Business Administration (SBA) issued a 30-Day “information collection” regulatory notice (85 FR, 67809-67810) with various forms implementing the Paycheck Protection Program (PPP) loan program under the CARES Act. 

Of particular note is SBA Form 3509Loan Necessity Questionnaire (For-Profit Borrowers), for borrowers with PPP loans of $2 million or more. The form is to be sent by bank lenders to borrowers after the borrower applies for loan forgiveness.  Once the form is sent to the borrower from the bank, the borrower will have only 10 days after receipt of the form to compile the comprehensive responses to the questionnaire. Eventually the answers to the questionnaire will be sent to the SBA for their review and analysis. 

Below is a non-scientific compilation of legal and accounting advice relating to the forms. Of particular note among all of them is the requested comparison on 2nd quarter gross revenue between 2019 and 2020, and other issues relating to the good faith application standards of the initial loan application. The advice compiled below counsels early action to be ready for the short response time, careful legal and accounting review of the loan application standards and responses, and other elements of judgment for the loans. 

The forms are not listed on the SBA website yet, and are expected to be released on or about November 25th, the close of the comment period.  There are some reports that banks already have the draft form and are ready to use it immediately upon approval. 

Please review the various advice articles below from:

Related Articles
OSHA recently released an Emergency Temporary Standard (ETS) on COVID-19 covering settings where employees provide healthcare services or healthcare support services. Contractors providing healthcare support services, such as equipment and facility maintenance, may have to comply with several provisions in the ETS. However, the standard does not apply to "well-defined hospital ambulatory care settings" where all employees are fully vaccinated, all non-employees are screened prior to entry, and people with suspected or confirmed COVID-19 are not permitted to enter those settings. Contractors whose employees are not providing healthcare support services are exempt from the ETS. However, OSHA has updated its guidelines for employers based on the most current guidance from the CDC. Employers are urged to comply with the updated guidelines.…
OSHA's recently presented Emergency Temporary Standard on COVID-19 (ETS) describes specific requirements for healthcare facility ventilation systems. The requirements apply to employers who own or control buildings or structures with an existing heating, ventilation, and air conditioning system(s) where employees provide healthcare services or healthcare support services. If your company provides HVAC services for an affected employer, the contents of the ETS ventilation provision may be helpful to you. …
Every day, the construction attorneys at Cohen Seglias are approached by clients as to how to address the current crisis due to the significant fluctuation in pricing in construction materials, equipment, and energy. The Construction Contracts & Risk Management Group at Cohen Seglias has prepared a material price escalation package to help contractors weather the storm.…
DOL, OSHA, and other federal agencies, are working diligently to encourage COVID-19 vaccinations. OSHA does not wish to discourage workers from receiving the COVID-19 vaccination, or disincentivize employers’ vaccination efforts. As a result, OSHA will not enforce 29 CFR 1904’s recording requirements to require any employers to record worker side effects from COVID-19 vaccination through May 2022. The agency will reevaluate the agency’s position at that time to determine the best course of action moving forward.…

Don't forget to register for MCAA's 22nd Sponsor Spotlight episode this Friday with Bob Bolton, MCAA’s President-Elect and Wayne Garrett, Managing Director, NA Applied Equipment for @CarrierHVAC. Save your seat today & join us on June 18 at 2:00 p.m. ET –

Looking for the latest from Charlotte Pipe & Foundry and @evolvemep? Find it in MCAA’s Virtual Trade Show!

Are you joining us THIS THURSDAY for a very special webinar with football legend turned entrepreneur, @JoeMontana? Co-hosted by BuildOps, you’ll hear Joe’s take on leadership, teamwork, and how to be your best in every situation. Don't forget to register –

.@Havtech and @MacDonaldMiller are among the MCAA members using @XOiTechnologies to capture facilities information that helps them improve service and better communicate with clients.

Load More...