Last month we reported that the Small Business Administration (SBA) was planning to drop the requirement for Paycheck Protection Program (PPP) borrowers with loans of $2 million or greater to submit a Loan Necessity Questionnaire when applying for PPP loan forgiveness.

Today, the SBA made it official. It has informed lenders that it is eliminating the requirement and will no longer request either version of the Loan Necessity Questionnaire: SBA Form 3509 for for-profit borrowers and SBA Form 3510 for not-for-profit borrowers. For any loans that have an open request for additional information related to the Loan Necessity Questionnaire, the SBA instructed lenders to close the request and submit the loan back to the SBA.

The changes will take effect immediately, and the SBA said it would update its FAQ document shortly with more details.

We will continue to monitor PPP developments and provide updates as any changes occur. As always, if you have any questions or would like assistance as you navigate the PPP loan forgiveness process, please contact your Kreischer Miller relationship professional or any member of our team. For additional news and resources, visit our COVID-19 Resource Center here.

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.