SBA Issues New Guidance On Paycheck Protection Program Loan Forgiveness Questionnaires

In early November, Archer advised its clients that the Small Business Administration (“SBA”) had quietly developed two questionnaire documents that were anticipated to be required of both for-profit and non-profit recipients of large Paycheck Protection Program (“PPP”) loans. Although not publically confirmed at that time by the SBA, a notice had appeared in the Federal Register announcing the SBA's intention to seek approval from the Office of Management and Budget to collect data from certain PPP loan recipients. This action was seemingly consistent with Treasury Secretary Mnuchin's April 2020 statement that the SBA would undertake a “full review” of any PPP loan that exceeded $2 million. Draft versions of the questionnaires were widely circulated online and it was apparent that the SBA was developing the questionnaires as a means of gathering supplemental information to be used by SBA loan reviewers to evaluate and assess borrowers' “good faith” certifications of