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
We invite you to join the Withum SBA Financial Assistance Services Team for a discussion regarding the latest developments with the SBA Loan Forgiveness Application submissions on November 20th at 2:30 PM EST.…
COVID-19 has rocked what had appeared to be a nearly invincible economy; one associated with substantial job growth, multi-decade lows in unemployment, sturdy compensation increases, robust retail sales, low inflation, and strong financial market performance. Join MCAA and Anirban Basu, Chairman & CEO of Sage Policy Group, Inc., on December 15th at 3pm EST for a webinar on our current economic circumstances, possible difficulties in our foreseeable future, and the contours of the brisk recovery to come thereafter.…
OSHA recently issued new guidance on how to use workplace ventilation systems to reduce exposures to the coronavirus, including efficiency targets for air filters and recommendations for fan use. The guidance calls for employers to install HVAC filters with minimum efficiency reporting value ratings of “13 or higher, where feasible,” and to “consider using” high-efficiency particulate air fan and filtration systems, “especially in higher-risk areas.”…
The CDC recently reported that airborne transmission of SARS-CoV-2 can occur in rare cases under just the right circumstances. In most cases, the virus is transmitted from one person to another in droplet form, and occurs when affected individuals are less than six feet away from the source for 15 minutes or more. However, new research indicates that when exposure occurs in enclosed spaces, exposure time is greater than 30 minutes, and some kind of expiratory exertion is taking place, such as shouting, singing, or exercising, the virus can be transmitted in aerosol form (smaller particles suspended in air).…

Looking for the latest from E.H. Wachs and Cerro Flow Products LLC? Find it in MCAA’s Virtual Trade Show!

http://ow.ly/1z8Q50CsXIY

While some businesses struggled to produce the information needed to apply for a Paycheck Protection Program loan, Rick Cronholm, owner of Johansen & Anderson, was able to pull all the necessary reports in less than 30 minutes, thanks to @JonasSoftware.

http://ow.ly/Zmq150Cqwyw

COVID-19 has rocked what had appeared to be a nearly invincible economy. Join MCAA & Anirban Basu, Chairman & CEO of Sage Policy Group, on Dec. 15 at 3pm ET for a webinar on our current economic circumstances and possible future difficulties. http://ow.ly/aq6150Csdza

Load More...