The SBA just informed lenders that the loan necessity review requirement for Paycheck Protection Program (PPP) loans of $2 million or more has been eliminated for both for-profit and not-for-profit borrowers. Additionally, borrowers are no longer required to submit a loan necessity questionnaire that had been previously requested by the SBA. Leading up to this, many borrowers had expressed concerns that the loan necessity questionnaire was not reflective on Congress’s intent when the PPP program rolled out in March of 2020.
If you have a PPP loan in the forgiveness review process with an open request related to the loan necessity issue, the SBA advised lenders to close such requests and submit the loan back to the SBA. The SBA plans to issue a set of frequently asked questions (FAQs) with more details.
Over 14 months, the PPP program provided around $800 billion in loans to nearly 12 million businesses.
Reach out to our team at MWB if you need assistance in completing your forgiveness application for a PPP loan or any questions you may have regarding ANY impact you are seeing to your business during this time.