After numerous trade organizations challenged the legality of the U.S. Small Business Administration’s Paycheck Protection Program (PPP) Loan Necessity Questionnaires, the SBA announced this month that it is dropping the requirement for loan necessity review for PPP loans of $2 million or larger. The questionnaires were an additional step to collect supplemental information to evaluate borrowers’ good-faith certifications on PPP loan applications.
The decision refers to SBA Form 3509 designed for for-profit borrowers and SBA Form 3510 for not-for-profit borrowers. Neither form is required to be submitted to the SBA. In addition, any open SBA requests for the Loan Necessity Questionnaires are also not required to be submitted.
Lenders are advised to resubmit loan forgiveness applications held up by additional information desired by the SBA for loan forgiveness review and to close these SBA requests within the PPP platform.
Speak to your lender about this SBA announcement, as it may pertain to your PPP loan forgiveness. You can also contact your LvHJ engagement partner or email us at firstname.lastname@example.org about this issue, accounting for loan forgiveness or the deductibility of expenses paid with PPP loan funds.
Source: AICPA Journal of Accountancy, U.S. Small Business Administration