The Paycheck Protection Program or PPP Form 3509 Loan Necessity Questionnaire (Form 3510 for nonprofits) is no longer required for loan forgiveness. The SBA requested that the Office of Management and Budget (OMB) withdraw its approval for the forms in this letter.
Since November 2020, the SBA has required Form 3509 or 3510 from borrowers requesting PPP loan forgiveness of $2 million or more when aggregated with PPP loans received by affiliates. The form focused on the “good faith” certification that businesses had to make when applying for a PPP loan, but it asked for significant documentation about how the borrower fared after receiving the loan.
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.
Until the SBA publishes official guidance, caution is advised and requests to complete the questionnaire should not be ignored. Typically, borrowers are given only 10 days to submit the completed form to the lender. Usually, the request for Form 3509 / 3510 also includes a request for other supporting documents that the borrower was instructed to maintain in its files; that documentation might still be required, even if Form 3509 / 3510 no longer is.
The withdrawal of the loan necessity questionnaire in its current form may not change the SBA procedures regarding the audit of all PPP loans of $2 million or more. Therefore, documentation of all aspects of those loans, including necessity, remains essential.
Borrowers that have already received a request for Form 3509 or Form 3510 should contact the lender for instructions on how to proceed. Borrowers who have not yet received a formal request for the loan necessity questionnaire may not receive one.
Feel free to reach out to us for help. You can also check our COVID-19 Resource Center for ongoing news and resources.