SBA Officially Drops PPP Loan Necessity Questionnaire Requirement
The U.S. Small Business Administration (SBA) recently informed lenders that it is eliminating the loan necessity review for Paycheck Protection Program (PPP) loans of $2 million or greater. In a notice sent July 9, the SBA said it would no longer request the Loan Necessity Questionnaire: SBA Form 3509 for for-profit borrowers and SBA Form 3510 for not-for-profit borrowers.
The SBA introduced the questionnaires last November. Later that month, 80 organizations signed a letter urging Congress, the Treasury Department and the SBA to temporarily suspend use of the questionnaires due to concerns about the types and time frames of information requested. The AICPA sent another letter the following week to the Office of Management and Budget (OMB) and the SBA expressing concerns that the forms did not reflect Congress’ intent when it established the PPP. Then in December, the Associated General Contractors of America (AGC) filed a lawsuit challenging the legality of the questionnaire.
Loan Necessity Questionnaires previously requested by the SBA are also no longer required to be submitted. For PPP loans with an open request for additional information related to the Loan Necessity Questionnaire, the SBA advised lenders to close the request in the PPP platform and submit the loan back to the SBA.
The SBA stated the PPP changes are effective immediately and that it will be releasing a FAQ with more information. TSCPA will continue to provide updates to this story.