PPP Loan Forgiveness: Loan Necessity Questionnaire
As part of the loan review process, the SBA is providing a Loan Necessity Questionnaire (“Questionnaire”) to lenders for them to distribute to PPP borrowers that, together with their affiliates, received loans of $2 million or more.
Borrowers that are requested to complete the Questionnaire should return it to their lender within 10 business days of receipt. The information that borrowers provide on the Questionnaire will help the SBA assess the borrowers’ certification in their loan application that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
It is important to note that a request to complete the Questionnaire does not mean that the SBA is challenging a borrower’s certification, rather the SBA’s assessment of a borrower’s certification will be based on the totality of the borrower’s circumstances through a multi-factor analysis.
After the submission of a borrower’s completed Questionnaire, the SBA may request additional information to complete its review. If additional information is requested, borrowers will have an opportunity to provide a narrative response explaining the circumstances that provided the basis for their good-faith loan necessity certification. The SBA will then make a final determination after reviewing any additional information that a borrower chooses to submit.
Here is the new PPP Forgiveness FAQ (#53) that addresses the Loan Necessity Questionnaire: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf
SBA Form 3509 (For-Profit Borrowers): https://www.sba.gov/sites/default/files/2020-12/SBA%20Form%203509%20--%20PPP%20Loan%20Necessity%20Questionnaire%20%28For-Profit%20Borrowers%29-508.pdf
SBA Form 3510 (Non-Profit Borrowers): https://www.sba.gov/sites/default/files/2020-12/SBA%20Form%203510%20--%20PPP%20Loan%20Necessity%20Questionnaire%20%28Non-Profit%20Borrowers%29-508.pdf
The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning these new statutory obligations and other matters related to COVID-19.