Recently, the Small Business Administration (SBA) published a 30-day notice seeking comments on its proposed collection of Paycheck Protection Program (PPP) related information. Included in the documentation are two new forms (Loan Necessity Questionnaires) specifically for businesses and nonprofits that received $2 million or more in PPP. The new forms, Form 3509 for business borrowers and Form 3510 for nonprofits, request supplemental information which SBA loan reviewers will use to evaluate the “need certification” borrowers previously made on their PPP applications.
The SBA indicated lenders will be responsible for sending this form to borrowers; however, it appears the lender will not be required to verify or validate any of the information provided on the questionnaires. Once received, a borrower will have 10 business days to return the completed form and required supporting documents to the lender. Although the SBA has not published the forms, it has been leaked and reported by several news sources.
The AICPA indicated it expects additional guidance related to Forms 3509 and 3510, and recently it and a group of over 80 other organizations requested the SBA suspend use of the Forms while considering alternative approaches. Borrowers should note that filing their Loan Forgiveness Application would begin the loan forgiveness process and ultimately start the clock on this new questionnaire. In light of this information, all Borrowers should evaluate the appropriate timing for filing their Loan Forgiveness Application. If choosing to apply before further guidance is issued, Borrowers will want to ensure their answers to the Questionnaire support their good faith certification of need at the time of application and may choose to provide additional context through supplemental files and documentation.
As each Borrower’s circumstances are unique, we recommend Borrowers reach out to the BPM Advisory team to discuss this latest information and any potential impacts on their PPP Loan Forgiveness filing strategy.
