15 Jul 2021 SBA Formally Withdraws Loan Necessity Questionnaire
Authored by RSM US LLP |
It is being reported by the Journal of Accountancy that the SBA has formally notified PPP lenders that the loan necessity questionnaire is withdrawn. Per the reporting, the SBA will no longer request Form 3509 or Form 3510 – the loan necessity questionnaires for for-profit and non-profit borrowers.
The withdrawal was first reported by the Associated General Contractors of America (AGC) as a result of a lawsuit it had filed stating the necessity questionnaire was not legal and focused on events that came after the certification of loan necessity.
We expect a release of the notice or an FAQ to be posted by the SBA in short order. For now, borrowers with outstanding loan necessity questionnaires should contact their PPP lender to determine if the questionnaire is still required. In addition, borrowers that, together with their affiliates, have loans of over $2 million may still receive questions from the SBA on loan necessity, just not in the form of this specific questionnaire.
This announcement will be welcome news to PPP borrowers as the loan necessity questionnaire created significant concerns about the SBA requiring repayment of PPP loans due to insufficient financial need and the SBA’s use of gathering data of events occurring after the time of loan application.
DO YOU HAVE QUESTIONS OR WANT TO TALK?
Fill out the form below and we’ll contact you to discuss your specific situation.
This article was written by Mathew Talcoff, Justin Stallard, Chad Wernimont, Ryan Corcoran and originally appeared on 2021-07-15.
2021 RSM US LLP. All rights reserved.
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. The RSM(tm) brandmark is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Haynie & Company is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.