Contractors take note: SBA begins issuing loan necessity questionnaires for both non-profit and for-profit PPP Borrowers
One of the most effective and supportive elements of the CARES Act legislation issued earlier this year was the availability of Paycheck Protection Program (PPP) loans. Since then, we have spent a great deal of time educating our clients and members of the construction industry on the constantly changing guidance that accompanied these loans from the SBA. Through this time, there have been questions on the economic necessity and then later “guidance” in the Questions and Answers that we shared about what you would need to meet the economic necessity provisions.
Now that the loans have been issued, many contractors have utilized those funds to cover the allowable costs and, in many cases, have begun to apply for forgiveness. Last week, the SBA announced that it has begun issuing certified loan necessity questionnaires to PPP Borrowers with loans of $2 million or greater.
Most contractors have had jobs impacted, either suspended, shut down or delayed. In addition, they have incurred PPE costs and social distancing staging issues along with sickness of employees and their families. If you have a PPP loans of $2 million or greater, consult your trusted advisors to complete the questionnaire. While the second quarter revenues may not have declined, the financial impact of the shuts downs resulting from this pandemic will likely significantly impact future work. In fact, we continue to see the suspension, termination, and delays of numerous significant projects so it’s important to consider the long-term impact of the pandemic on your business.
Subject matter expertise
CPA, Partner - Construction Industry Leader
Let’s start a conversation about your company’s strategic goals and vision for the future.
Please fill all required fields*
Please verify your information and check to see if all require fields have been filled in.
SBA Begins Issuing Loan Necessity Questionnaires for Both Non-Profit & For-Profit PPP Borrowers
Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.