Tax Alert: SBA Releases PPP Loan Necessity Questionnaire for Loans of $2 Million or Greater
Please consult this information from OSAE Strategic Partner Clark Schaefer Hackett
The Small Business Administration (SBA) has started issuing loan necessity questionnaires to Paycheck Protection Program (PPP) borrowers with loans in excess of $2 million. This form will be used by the SBA to determine the borrower’s good-faith certifications of economic need when applying for the PPP. There are separate forms for non-profit and for-profit entities. A completed form is due to the lender within 10 business days of receipt from the lender.
Included in the questionnaire are questions related to gross revenue (compared to 2019/early 2020), impact due to shutdown orders (operational and financial), cash position, owner distributions, capital investments, employee compensation and endowment amounts (non-profits only).
Businesses and non-profits with loans in excess of $2 million should carefully review the forms and begin to gather the required information, as many questions require supporting documentation.
The Clark Schaefer Hackett (CSH) Government Services Team is here to help OSAE members with questions related to the PPP Loan Necessity Questionnaire. Please contact them at email@example.com for assistance.
Please select this link to access the not-for-profit form.
Please select this link to access the for-profit form.