If you have a Paycheck Protection Program (PPP) or affiliated PPPs that total over $2M, you may be receiving a questionnaire directly from your lender regarding necessity of the PPP funds. This update was just announced to lenders within the past week. The Small Business Administration (SBA) did ask for comment. As the situation is fluid, you can expect a further update.
Mueller’s COVID-19 First Response team recommends to hold off on applying if you are impacted.
This update applies to both for-profit and non-profit organizations. The forms are attached here for your reference:
SBA Form 3509: For-Profit Borrowers
SBA Form 3510: Non-Profit Borrowers
It appears the SBA will be using the information received from these questionnaires to select certain loans for further review.
We do not know when you will start receiving these letters and the intent of this communication is to make you aware of the new obstacle the SBA is looking to impose on borrowers that received $2M or more in PPP funding.
If you have not already done so, we recommend that you draft a memo describing why you believed the PPP loan was necessary based on the economic uncertainty COVID-19 imposed on your business at the time of application. This may help drive responses to the questionnaire.
If you do receive one of these questionnaires, please reach out to us for assistance as soon as possible.
Please contact a member of our COVID-19 First Response Team if you have questions.
Scott Anderson, CPA, CTA
Director, Consulting Services
+1 630 524 5259
sanderson@pkfmueller.com
Chris Gent, CPA, CISA
Partner
+1 847 649 8839
cgent@pkfmueller.com
