Paycheck Protection Program: Large Loan Borrowers Required to Complete New Loan Necessity Form
Small businesses and nonprofits with Paycheck Protection Program (PPP) loans over $2 million need to complete a new loan necessity form issued by the US Small Business Administration (SBA) to lenders. Approximately 30,000 PPP loans are over $2 million.
Lenders will send borrowers SBA Form 3509, Paycheck Protection Program Loan Necessity Questionnaire (For-Profit Borrowers), or SBA Form 3510, Paycheck Protection Program Loan Necessity Questionnaire (Non-Profit Borrowers). Borrowers will have 10 business days to complete and return the form.
The new forms include 21 questions, which request supplemental information SBA loan reviewers will use in evaluating the good-faith certification borrowers made on their PPP applications that economic uncertainty made their loan request necessary to support ongoing operations.
The SBA previously stated that it would perform loan necessity reviews on all PPP loans to borrowers that, together with their affiliates, received $2 million or more in PPP funding. Failure to comply with the returning the form may result in the SBA determining the borrower was ineligible for the PPP loan or forgiveness amount.
If you have questions about your PPP loan, contact us today to discuss with our team.
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