Paycheck Protection Program (PPP) lenders have been distributing SBA Form 3509 to PPP borrowers with loans of $2 million or more when they apply for loan forgiveness. Form 3509 focuses on the necessity certification made when the PPP loan was applied for.
Form 3509 is now being reviewed by the Small Business Administration and Office of Management and Budget, and NADA has raised concerns with both agencies regarding the appropriateness of many of the questions and information requests. NADA has urged SBA and OMB to streamline the questionnaire to reduce the information collection burden associated with it.
Dealership PPP borrowers receiving a Form 3509 should check the OMB expiration date in the upper right-hand corner. Forms 3509 with expiration dates of Oct. 31, 2020, or Nov. 30, 2020, need not be completed and a dealer-borrower that receives an expired form from a lender should request a new, unexpired version with a Dec. 31, 2020, expiration date. Unexpired questionnaires should be completed and returned to lenders within 10 days after receipt. Failure to accurately complete Form 3509 or provide associated documentation could result in a determination that the borrower is ineligible for PPP loan forgiveness.
Dealers are urged to review Form 3509 concerns with their lenders and with their legal and accounting advisers. See also #53 in SBA’s FAQs for Lenders and Borrowers.