Please note: This blog is current to the date of its publication, Wednesday, July 14. For additional updates or assistance navigating these uncertain times, please contact us or visit our SST COVID-19 resource page.
The U.S. Small Business Administration (SBA) recently announced substantial changes to its Loan Necessity Questionnaire requirements. The good news is that these changes will save all parties time and resources.
For the past year, the SBA has required Paycheck Protection Program (PPP) borrowers submit a Loan Necessity Questionnaire when applying for forgiveness on loans of $2 million or more. Now, they are rolling back these requirements to ensure a more efficient forgiveness processes for some borrowers.
In addition, effective immediately, the SBA will no longer request the loan necessity questionnaire (SBA Form 3509) for any PPP loan reviews. It will also pull the nonprofit loan necessity questionnaire, SBA Form 3510.
SBA informed lenders that it plans to publish an updated FAQ soon. Stay tuned to SST for the latest updates.
It is important to remember that although these forms might no longer be required by the SBA, you may still need to provide financial documentation of need. It is also essential to hold onto financial documents related to PPP loans for up to six years due to potential audits.
Read more about these changes in the following articles:
SST will continue to keep you informed as SBA makes additional changes and formal announcements. For additional tax information and guidance, contact the experts at SST today.
Special thanks to SST Partner Emily Cook for providing the content for this post.