The SBA issued to lenders a letter and instructions on the agency's "loan necessity" questionnaire for Paycheck Protection Program loans of $2 million or more.
The instruction guide details how lenders receive notice of a questionnaire, what to do after being notified, what to do with borrower responses, and how to submit the questionnaires. The SBA letter says requests to complete the questionnaire do not mean the SBA is challenging a borrower’s certification.
Lenders are required to upload the completed form and supporting documents via the SBA's lender platform and to separately input borrower responses to each question, though they aren't required to re-enter narrative comments from the questionnaire.
Further, lenders are not required to verify or validate borrower responses, though they should confirm that all required responses, supporting documents, signatures, and certifications have been received.
ICBA has raised questions about the questionnaire among policymakers. In a recent ICBA letter to congressional leaders and separate joint letters to lawmakers and agency heads, ICBA called on the SBA to suspend the questionnaires while the agency addresses lender and borrower concerns.
The letters note that the questionnaire has led many borrowers to justifiably fear that the SBA is altering PPP loan eligibility criteria after funds have already been disbursed.
ICBA recently expressed strong support for House and Senate legislation that would restore forgiveness for Economic Injury Disaster Loan Advance recipients who also have a Paycheck Protection Program loan.
ICBA has raised questions about an SBA "loan necessity" questionnaire for Paycheck Protection Program loans of $2 million or more that appears to go against the language of the CARES Act.