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Small Business Administration Releases New Forms for Paycheck Protection Program Loans Exceeding $2 Million

Small Business Administration Releases New Forms for Paycheck Protection Program Loans Exceeding $2 Million

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The Small Business Administration (SBA) released new required forms for Paycheck Protection Program (PPP) loan recipients with loans exceeding $2 million. These forms will help the SBA confirm “necessity” of loaned funds, of which the agency has already announced that PPP loans exceeding $2 million will be audited.

The SBA released two forms: Form 3509 for for-profit borrowers and Form 3510 for nonprofit borrowers. Overall, the forms seek to gather information on the impact of the pandemic on borrowers’ operations, finances and liquidity, with questions like:

  • Were you shut down by any governmental order?
  • How did you change your operations?
  • Did you voluntarily change your operations?

It’s important to note that the SBA said that the form “doesn’t mean the SBA is challenging” the validity of the PPP certification made at the time of the loan application. These forms will help the agency gather information in order to evaluate PPP certification in accordance with the SBA’s established loan regulations.

Borrowers must submit the requested Form 3509 or 3510 within 10 business days from the initial lender request. From there, the lender has five business days to submit the forms to the SBA. Failure to provide the required form could result in the SBA denying loan forgiveness. If the SBA seeks repayment in this instance, there is no guarantee that repayment will be at the original loan terms.

Need Help?

You can read more about applying for PPP loan forgiveness here. For any other questions, contact us here or call 800.899.4623.

COVID-19 updates

Published on October 30, 2020