The US Small Business Administration (SBA) has informed lenders that it is canceling the loan eligibility check for PPP loans of $ 2 million or more.
In a notice sent on July 9, the SBA announced that it will no longer request any version of the loan questionnaire: Form SBA 3509 for commercial borrowers and Form SBA 3510 for non-commercial borrowers. In addition, the loan application forms previously requested by the SBA are no longer required.
For PPP loans with an open request for additional information related to the Loan Requirement Questionnaire, the SBA advised lenders to close the request in the PPP computer platform and send the loan back to the SBA.
The changes are effective immediately, but the SBA said it will release an FAQ with more details shortly.
Associated General Contractors of America (AGC) said last month that the SBA is processing the cancellation of the Loan Questionnaire request.
The General Contractor Group has filed claim December 2020: Challenging the legality of the questionnaire and the process used by the SBA and the Office of Management and Budget (OMB) to develop, approve and publish it. IN statement On June 23, AGC CEO Stephen E. Sandherr reported that it had become known that the SBA had begun a process for a complete withdrawal of the questionnaire.
SBA introduced new forms In November. Later that month, AICPA became one of 80 organizations that signed a letter urging Congress, the Treasury and the SBA to temporarily suspend the use of questionnaires due to concerns about the types and timing of information requested. AICPA sent another letter The following week, OMB and SBA raised concerns that Forms 3509 and 3510 were onerous and did not reflect Congress’s intentions when it instituted PPPs in March 2020.
On May 31, the SBA stopped accepting applications for PPP loans. In 14 months, the program disbursed nearly $ 800 billion in bad loans to nearly 12 million businesses. CPA have played a key role in assisting borrowers in the application and forgiveness process.
Loan questionnaires were among the many topics of PPP forgiveness that were discussed on July 8 during the AICPA town hall webcast. Webcast replay is available for free at AICPA TV…
AICPA experts discuss the latest news on PPPs and other small business assistance programs at the bi-weekly virtual town hall. Webcasts that provide CPE credit are free for AICPA members and $ 39 for non-members. Go to AICPA Town Hall Series See the web page for more information and registration. Recordings of town hall events are available for free viewing at AICPA TV…
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– Jeff Drew (Jeff.Drew@aicpa-cima.com) this is JofA senior editor.