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SBA Requests to Withdraw Requirement for Loan Necessity Questionnaires

In a letter submitted to the Office of Management and Budget (OMB) on June 21, 2021, the U.S. Small Business Administration (SBA) requested to discontinue the use of the Forms 3509 & 3510, Loan Necessity Questionnaires.

The SBA’s withdrawal of the loan necessity questionnaires was discussed June 24 on the AICPA’s Town Hall webcast. A replay of the webcast is available for free on AICPA TV.

As a reminder, these questionnaires were released late October of 2020 to aid the SBA in evaluating the necessity of the Paycheck Protection Program (PPP) loans for borrowers with initial loan values over $2m.

What PPP Borrowers Need to Know

Any Paycheck Protection Program (PPP) borrower that has already received a request for Form 3509 or Form 3510 from its lender should contact that lender for instructions on how to proceed in light of reports that the SBA will withdraw the requirement.

Borrowers who have not yet received a formal request for the loan necessity questionnaire may not receive one.

Until the SBA publishes official guidance, any requests received by borrowers to complete these questionnaires should not be ignored. Borrowers are only given 10 days to complete and submit this form to lenders. Often the request to complete the questionnaire includes additional documentation requests and therefore certain documentation may still be required, even if the questionnaire is not.

While we wait for the OMB and SBA to reach a determination on the request, AAFCPAs reminds clients that although the questionnaires may no longer be required, the SBA may release revised procedures for borrowers. We advise clients to continue to document necessity and maintain records related to these loans.

If you have any questions, please contact Brittany Besler, MBA, CPA, Esq. at 774.512.9001, bbesler@nullaafcpa.com; or your AAFCPAs Partner.

About the Author

Brittany Besler
Brittany possesses a unique combination of tax, legal, and business backgrounds, and is a valuable member of AAFCPAs’ Tax practice. She provides tax planning, research, and compliance solutions for corporations, partnerships, nonprofits, individuals, estates & trusts. Brittany advises businesses and individuals on various federal, state, local and foreign tax-related issues, including counseling clients on the consequences of new and updated tax laws. She assists clients in the creation of appropriate and optimal organizational structures, and advises on tax planning and tax exemption compliance. She advises newly-formed and well-established nonprofit clients on meeting compliance requirements of various government agencies, including the IRS rules on fundraising and political activities.