CUNA and 80 organizations wrote to Congressional, Treasury and Small Business Administration leadership Tuesday with concerns over a new Paycheck Protection Program (PPP) review process established by the Treasury and SBA that includes “Loan Necessity Questionnaires.”
“Unfortunately, the questionnaires introduce a confusing and burdensome process for both borrowers and lenders, and we fear that it could lead the agencies to inappropriately question thousands of qualified PPP loans made to struggling small businesses,” the letter reads. “On behalf of the millions of American workers supported by PPP loans, we urge you to act quickly to work directly with SBA and Treasury to avoid this unintended consequence.”
Under the new requirements, PPP borrowers with loans of $2 million or greater must complete one of two versions of the new Loan Necessity Questionnaire and provide extensive documentation supporting their responses.
The organizations, in letters to the SBA and Treasury, request that the agencies consider temporarily suspending use of these questionnaires while working together toward a better solution.
The letter to Congressional leaders includes specific issues with the process, including policy concerns, borrower and lender burdens and CARES Act requirements related to borrower good faith certifications.