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SBA Issues FAQ on Questionnaires for PPP Loans in Excess of $2 Million

December 14, 2020
Hinshaw Alert

In November 2020, the Small Business Administration (SBA) issued for comment two questionnaire forms, which would need to be provided by Paycheck Protection Program (PPP) lenders to PPP borrowers who, together with their affiliates, received more than $2 million in PPP loans.

Previously, the SBA advised PPP borrowers that it would examine all PPP loans in excess of $2 million, and that a review of the good-faith certification would be part of this examination. With respect to this certification, the SBA also stated that PPP borrowers "must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business."

The questionnaires make it clear that the SBA will be focusing on for-profit borrowers that:

On December 9, 2020, the SBA issued FAQ #53 that indicated the following:

As we indicated in our client alert from a month ago, we recommend that PPP borrowers who will have to complete the questionnaire begin "preparing their responses and collecting the relevant documents immediately." We further advised that borrowers should carefully complete the form and provide the required documentation to their lenders.