For health centers that received SBA PPP loans of $2 million or more…
Tips for Completing the 3510 Loan Necessity Questionnaire
The Small Business Administration (SBA) is requiring that lenders issue “Loan Necessity Questionnaires” to borrowers that received a Paycheck Protection Program (PPP) loan of $2 million or greater and have applied for forgiveness, in order to solicit supplemental information regarding the necessity of the loan request. There are two versions of the questionnaire, one for for-profit borrowers (SBA Form 3509) and one for non-profits (SBA Form 3510). Health centers should receive the non-profit Form 3510 from their PPP lender. The questionnaires have not been posted to the SBA’s website but you can ACCESS THE 3510 FORM HERE >
Form 3510 must be completed and returned along with the required supporting documentation to the lender within 10 business days. Failure to do so may result in the SBA’s determination of ineligibility and request for repayment of the loan or “other available remedies.”
The questionnaire requires borrowers to provide extensive information and backup documentation regarding receipts, expenses, operations, required closures, liquidity, and more. Health center leaders we’ve been in contact with who are seeking guidance about this form have come up short. They are finding that Form 3510 does not allow the opportunity to provide context surrounding the situation that resulted in their health center’s loan necessity. They are concerned that the lack of context may hinder their loan forgiveness.
Recognizing that the strategic measures health centers are taking to weather this pandemic while also providing communities with access to care should be a key consideration for the SBA in determining loan forgiveness, Capital Link has the following suggestions for health center borrowers related to Form 3510:
Please note that it is quite possible that new guidance may be forthcoming from the SBA or individual banks related to Form 3510. Recently, Capital Link worked with NACHC to provide comments on Form 3510 during the comment period provided by the SBA. You can read the comments here. We will post anything we learn here on our COVID-19 webpage as it becomes available.