Questionnaire Requirement Imposed on PPP Borrowers: Client Alert Digest

The Small Business Administration on October 26, 2020 informed lenders that they must distribute questionnaires to borrowers that participated in the Paycheck Protection Program (PPP) under the Paycheck Protection Program Flexibility Act Of 2020 (166 Cong Rec H 2332) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (116 P.L. 136, 2020 Enacted H.R. 748, 116 Enacted H.R. 748, 134 Stat. 281, 116 P.L. 136, 2020 Enacted H.R. 748, 116 Enacted H.R. 748, 134 Stat. 281). Any borrower that took on a loan of $2 million or more (and its affiliates, as defined by the SBA) must complete the survey. There are separate surveys for nonprofit and for-profit borrowers. The for-profit version of the survey includes questions regarding the borrower’s revenues during the second quarter of 2020; whether the borrower had to shut down or significantly adjust its operations; cash spent on capital improvements not related to COVID-19; cash on hand; whether 20% or more of the borrower’s ...