Business Groups Perturbed by New PPP Questionnaire

By:
Chris Gaetano
Published Date:
Nov 20, 2020
Business groups are pushing back against a questionnaire about their applications for Paycheck Protection Program (PPP) loan forgiveness, saying not only that it is burdensome and confusing for small businesses, but also that it hasn't gone through the proper channels for approval, reported CFO.com. The "loan necessity" questionnaires that have been sent to loan recipients since early this month, but only to those whose loans were $2 million or more, requests specifics on the borrowers' gross revenues, capital improvement projects, dividend payments and compensation, including whether any employees earn more than $250,000—with a due date of 10 business days from when the borrowers received the questionnaire.

A coalition of 80 different business groups, including the AICPA, said that the questionnaire demands a level of reporting and documentation never before required of PPP borrowers; the coalition is concerned that the questionnaire asks about liquidity and revenue data, which could expose the personal finances of small business owners.

Also standing in opposition is the Associated General Contractors of America, which sent the Small Business Administration a cease-and-desist letter, according to the Washington Business Journal. It said that the SBA did not provide for a sufficient public comment period, as it sent out the questionnaires despite saying that companies had until Nov. 26 to comment. It also noted that, by asking companies for information subsequent to their certification of economic need, they must provide documentation they themselves did not have when they applied for the loans.

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