Paycheck Protection Program Update

On October 26, 2020, the Small Business Administration (SBA) published a 30-day notice in the Federal Register related to seeking approval by the Office of Management and Budget (OMB) related to two new information filing forms, form 3509 and form 3510, documenting the necessity certification issued under FAQ #31 related to the Paycheck Protection Program (PPP). While copies of these forms have been issued, they have not yet been published on the SBA’s website, and therefore are not officially released documents at this time. The forms require various forms of financial information to be disclosed by for-profit entities (form 3509) and non-profit entities (form 3510) for those whose PPP loans (including affiliates) totaled $2,000,000 or more. As indicated in the draft forms, the purpose is intended to facilitate the collection of supplemental information that will be used by SBA loan reviewers to evaluate the good-faith certification that was made on the PPP borrower application that economic uncertainty made the loan request necessary. The form will be issued by the lender servicing the loan and the completed form is due within ten business days of receipt from the lender.

Some of the financial information requested under these draft documents include certifications and disclosure of quarterly revenues, distributions, compensation levels to owners and employees, and more. It appears as though these forms are to address the necessity question for these larger loans, which was, and remains to be a legal determination. As the forms have not yet been officially published and are still open to public comment, we suggest that you continue to monitor all new developments from the SBA and Treasury related to this program. We will continue to keep you informed as new information is released and the forms are finalized.