SBA’s loan necessity questionnaire for PPP loan forgiveness applicants may be going away soon. They are currently evaluating this and we believe SBA will be making a formal announcement about this in their frequently asked questions section.
Nearly 71% of PPP loans have not applied for debt forgiveness. One main reason is caused by the loan necessity questionnaire that SBA began using in October of 2020 for loans > $2 million, asking and requesting details that did not align with the original application of the PPP loans in March. The uncertainty of what the rules really are in this area have caused many businesses to hit the pause button and evaluate if they want to apply and the risks if they cannot adequately prove something that there is very little guidance on. This uncertainty has brought some lawsuits, such as by the Associated General Contractors of America who are challenging the legality of the questionnaire. If you haven’t applied for debt forgiveness for this reason, you may soon be relieved of this hurdle.