Borrowers who received a Paycheck Protection Program (PPP) Loan of $2 million dollars or more will now be required to submit a Loan Necessity Questionnaire. There is a “For-Profit Borrowers” form and a “Non-Profit Borrowers” form. The Small Business Administration (SBA) will send these forms directly to lenders, who will then pass them along to borrowers for completion.
According to a report from the Journal of Accountancy, the AICPA believes that these documents will not be available for download on the SBA’s website and will only be accessible to lenders. However, the Journal of Accountancy did publish PDFs of the For-Profit and Non-Profit forms.
The completed form, along with supplemental documentation, must be returned to the lender within ten business days after the borrower receives the questionnaire. After the form is submitted to your lender, the SBA will review it and could possibly ask for additional information. If a borrower does not fulfill these requirements, your loan may be invalidated and/or the SBA could seek repayment of your loan.
So why is the SBA asking borrowers for additional information? In an effort to maximize the integrity of the program and protect taxpayer dollars, this form is designed to collect supplemental information that will be used by the SBA to determine if your loan request was necessary due to the current economic uncertainty.
DGC has a proven process that utilizes our sophisticated model and incorporates our data analytics experience and accounting expertise to maximize PPP Loan forgiveness. If you have questions, please contact a member of your DGC client service team or Kimberley Train, CPA, ABV at 781-937-5112 / firstname.lastname@example.org. You can also visit DGC's coronavirus web page at dgccpa.com/coronavirus which is frequently updated with new resources to help you deal with the financial impact of the coronavirus on you and your business.
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