November 17, 2020
Hot Topic Tuesday — SBA Quietly Releases Borrower Questionnaire for PPP Loans over $2 Million
The SBA recently issued a quiet release of two new borrower questionnaires on the PPP Forgiveness Platform for loans over $2 million. The purpose of these forms is to facilitate the collection of supplemental information that will be used by SBA loan reviewers to evaluate the borrower’s good-faith certification that economic uncertainty made the loan request necessary. The first form, SBA Form 3509, is to be completed by for-profit borrowers and the second, SBA Form 3510, is intended for nonprofit borrowers.
As of November 16, 2020, no procedural notice has been published alongside these new forms. However, during yesterday’s Coleman Report Live, one commenter said that when the SBA initiates a review of a loan over $2 million the lender servicing that loan will be notified and will be given a loan review notice that will provide additional instructions regarding the lender’s responsibilities related to the distribution and completion of the form.
The questionnaires state that receipt of either the 3509 or 3510 does not mean that the SBA is challenging the borrower’s certification. However, if the borrower fails to complete the questionnaire and provide the required supporting documents within 10 days of receipt then the SBA may determine that the borrower was ineligible for either the PPP loan, the PPP loan amount, or the forgiveness amount claimed. As a result, the SBA may take action to seek repayment of the loan or pursue other available remedies.
Within five business days after the borrower provides a complete form with all required responses, supporting documents, signatures, and certifications, the lender servicing the loan will be required to upload the form and documents to the SBA’s PPP Forgiveness Platform and separately input the borrower’s responses to each question.
The current version of these forms is available in the PPP Forgiveness Portal under the “Resources” tab. Copies of the forms are also available here: SBA Form 3509 and SBA Form 3510. Please note that due to the Paperwork Reduction Act, the expiration date on these forms is currently November 30, 2020. However, the same Forms are expected to be approved for use in December without any material changes.