Co-speaker, Federal Bar Association with MyLawCLE, December 10, 2020
The Small Business Administration began asking SBA Paycheck Protection Program lenders to issue over 50,000 loan necessity questionnaires to borrowers that received $2 million or more in funds from the PPP. The information collection is extensive and reaches to private and public company borrowers. Also, both non-profit and for-profit borrowers received questionnaires, for which there are two different forms: one for non-profit borrowers and another sent to for-profit firms. The SBA’s questionnaires raise concerns about whether the SBA is going beyond Congress’ intent and if this form creates additional regulatory burdens for already struggling small businesses. Borrowers have just ten business days from receipt of the questionnaire to return the completed form and required supporting documents to the borrower’s financial institution.