The Small Business Administration (SBA), on Monday, officially announced that they will no longer require the use of Forms 3509 and 3510, Loan Necessity Questionnaire. This form was released to lenders in November 2020 and was intended to be submitted by borrowers who received loans of $2 million or more as a single loan or in the aggregate. This form was met with some controversy in the way that it was released and in the questions that were posed. In December 2020, the Associated General Contractors of America put forth a lawsuit challenging these forms and the process used to develop them.
Any borrowers that have an open request related to Form 3509 or Form 3510 are no longer required to submit that documentation to their lender. It is important to note, that while the Loan Necessity Questionnaire has been eliminated, the audit requirement for all loans of $2 million or more remains in place.
