Pursuant to the Paperwork Reduction Act (PRA), the SBA is seeking comment on a new Questionnaire for PPP borrowers with loans of $2 million or more. The Form 3509 Questionnaire focuses on the “necessity” certification all borrowers made when they applied for their PPP loans. NADA is currently reviewing Form 3509 for inappropriate and overly burdensome questions or information requests, and intends to file comments with SBA by the November 25, 2020 due date.
Note: as indicated on the bottom of the first page of the form, it need not (and should not) be filled out if it has an expired PRA approval/OMB Control Number. The version of Form 3509 originally made available to PPP lenders had a 10/31/2020 OMB Control Number expiration date. Reportedly, SBA has since provided lenders with access to a version of Form 3509 with an 11/30/2020 OMB Control Number expiration date. If a PPP lender sends a Form 3509 with an unexpired OMB Control Number to an affected borrower, the borrower has 10 days to complete and return it to the lender. A failure to accurately complete the Questionnaire or provide associated documentation could result in a determination by SBA that the borrower is ineligible for loan forgiveness.
Affected dealers should immediately consult with their PPP lenders, their CPAs and/or their legal counsel regarding Form 3509. To date, NADA has been recommending that affected borrowers request that their lenders hold off on sending out Form 3509 until such time as SBA has completed its PRA review. In addition, NADA has suggested that affected dealers hold off on applying for PPP loan forgiveness until Form 3509 is finalized. An NADA analysis of PPP certification issues is available on the NADA Coronavirus Hub. Please direct any questions or concerns to [email protected].