Client Alert: SBA Issues New Questionnaires and Guidance for PPP Borrowers with Loans Over $2 Million

Under the Paycheck Protection Program (the “PPP”), PPP loan borrowers are, and always have been, required to certify that the requested PPP loan funds are necessary to support their “ongoing operations” in light of the economic uncertainties created by COVID-19. However, since the inception of the program there has been a lot of ambiguity as to how, and as of when, a particular borrower’s need is to be assessed for purposes of being able to make such certification. That ambiguity recently increased significantly when the Small Business Administration (the “SBA”) started sending out a “Loan Necessity Questionnaire” (the “Questionnaire”) to PPP loan borrowers with PPP loans over $2 Million. Learn more in the new Client Alert written by Freeborn Partner Anthony Zeoli.

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