A: No, if the borrower or the borrower`s owner is involved in bankruptcy proceedings at the time of filing, that company is not a suitable borrower for a PPP loan. If the borrower is involved in bankruptcy proceedings after the application but before the funds are disbursed, it is the borrower`s duty to inform the lender and the lender is not allowed to disburse the funds to the borrower. The lender may rely on the borrower`s assurances regarding his or an owner`s participation in the bankruptcy proceedings at the time of application. In addition to releasing the SBA form, ABA today released several new resources to help bankers navigate PPP. Resources include a summary document and frequently asked questions, as well as a number of conversation topics to use with the media or consumers. A: The SBA provided this procedural notice on 23 July 2020. SBA announced that it has partnered with a financial services provider, Goldschmitt-CRI, to provide a secure platform to accept credit surrender decisions, supporting documents and pardon payment applications. This platform allows lenders to upload the necessary data and documentation, monitor the status of the remittance request, and respond to SBA in the event of an application or when the SBA selects the loan for review. The SBA will publish a link to the PPP forgiveness platform on its website.
The PPP forgiveness platform will go live on August 10, 2020 and will begin accepting bids from lenders, subject to an extension if further legislative changes are made. The instructions on the form also stipulate that the information requested – questionnaire replies and supporting documents – must be provided by a creditor within ten working days of requesting this information. The SBA notes that a borrower may be required to provide additional information in order to grant a rebate, and that failure to complete the form may result in a „finding that you were not eligible for the PPP loan, the amount of the PPP loan, or the amount of forgiveness claimed, and the SBA may request repayment of the loan or pursue other available remedies.“ Form SBA 3509 also includes other certifications regarding the accuracy of responses and warns that false information can result in criminal penalties under several federal laws. A: The interim final payment plan was published on April 28, 2020. With the exception of loan increases for partnerships or seasonal employers (see below), the lender must disburse the total loan amount within ten calendar days of the date the SBA assigns the loan an SBA loan number, which is considered the date of approval. For SBA loans approved before April 28 but not disbursed before April 28, the loan should have been disbursed within 10 calendar days of April 28. Loans that cannot be disbursed within 20 calendar days of SBA loan approval because the borrower has not submitted additional required information must be cancelled by the lender and not disbursed. Any loan amount intended to refinance an EIDL loan must be sent by the lender directly to the SBA and not to the borrower. The Small Business Administration today released Form 3506, which non-SBA lenders must file to obtain delegated authority to issue loans 7(a) under the Paycheque Protection Program. Banks that are not yet certified as SBA 7(a) lenders have waited for this form to start accepting PPP loan applications. Completed forms can be submitted to firstname.lastname@example.org.
The SBA has also started to publish the same information and some additional forms on its website. These descriptions are provided for informational purposes only and should not be construed as legal advice on specific facts or circumstances. Rosenberg Martin Greenberg, LLP has experience in all aspects of federal and state tax laws, legislative and administrative developments related to the CARES Act that address past compliance issues, white-collar criminal proceedings, and more. For more information, please contact Brandon Mourges at 410.951.1149 or email@example.com. Essentially, responses to Form 3509 will provide reasons to refuse credit forgiveness or seek other recourse against borrowers who were not eligible for the PPP. For example, borrowers who have a NAICS code in relation to an ineligible business class (e.B. disclose the assets of a large listed corporation with many employees and access to capital, or disclose the assets of a foreign government or corporation based on these tracking questions. It is not clear what additional measures the SBA can take against these borrowers (or lenders) if they should never have qualified for the PPP. For those who are clearly not eligible for the PPP and provide incorrect answers on Form 3509 (or answers that do not match their original loan application), this is another piece of information that can be used in future enforcement actions. .