On Dec. 9, the Small Business Administration published FAQ Number 53, addressing why certain borrowers will receive Paycheck Protection Program Loan Necessity Questionnaires. The SBA also publicly released for-profit and nonprofit questionnaires.
According to the FAQ, SBA is reviewing all loans of $2 million or more and the questionnaire is part of this process. The questionnaire is due 10 business days after a borrower receives it from their lender.
ABC has expressed concerns to Congress and the administration about the onerous burden these questionnaires will place on our nation’s small businesses, which continue to struggle due to COVID-19 restrictions in states and local communities. Further, the new questionnaires could have a chilling effect on businesses applying for a potential new round of PPP funding and would limit the impact of this critical program in our nation’ recovery.
ABC joined a coalition of 80 organizations in letters to congressional leaders and SBA/Treasury regarding the PPP Loan Necessity Questionnaires. ABC has also urged Congress to act on this issue in an action alert and recent letter to Congress. ABC will continue to monitor this critical issue and provide updates on any congressional or administration responses.