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First Draw PPP Loans $2 Million and Up and the PPP Necessity Questionnaires - Update | Schwabe, Williamson & Wyatt PC


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Starting around October 26, 2020, the Small Business Administrations (the “SBA”) asked Paycheck Protection Program (“PPP”) lenders to provide certain questionnaires to PPP borrowers with loans of $2 million or greater. There are two questionnaire forms on the Treasury: Form 3509 for for-profit borrowers and Form 3510 for non-profit borrowers. On December 9, 2020, the SBA released FAQ 53, which provides some clarifications on the questionnaire (the “FAQ #53”).
Update: Starting in March 2021, we saw borrowers with loans of $2 million or greater starting to receive requests for additional materials (such as the maintained documents) or being informed by their lenders that they were under “SBA review.” Also, in March, April, and May 2021, we saw several lenders (and perhaps the SBA) stop processing forgiveness applications while they were working on new First Draw and Second Draw PPP Loans. In late Ma ....

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SBA Issues Updated PPP FAQ And Clarifies Interplay Between The Necessity Certification And 25% Revenue Reduction Test For Second Draw Loans - Finance and Banking


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Borrowers seeking to apply for First Draw Paycheck Protection
Program (PPP) loans or Second Draw (PPP2) loans are required to
certify on loan applications that current economic
uncertainty makes this loan request necessary to support the
ongoing operations of the borrower or applicant.  That
necessity certification as it has come to be known, is
riddled with amorphous language that has proven to be a source of
confusion and ambiguity for borrowers from its inception.  The
SBA initially offered vague, interpretive guidance to public and ....

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