The Small Business Administration is quietly rolling out an effort to scrutinize the largest businesses that took payroll support loans during the pandemic, demanding new details about their operations to justify the aid, Politico reported. The SBA last week began to circulate "loan necessity" questionnaires aimed at companies and nonprofits that took forgivable Paycheck Protection Program loans worth $2 million or more. The agency declined to comment on the forms and issued no public announcement beyond a brief Federal Register notice marking their release, but copies were obtained by Politico. The questions posed by the SBA have rattled banks, which issued the loans and would be responsible for delivering the questionnaires to the agency, as well as accountants for PPP borrowers. They say it's another "gotcha" moment in a program that has been subject to shifting rules and expectations since its hurried launch in April and could create major new complications for businesses that took advantage of the aid. The loans were originally designed to be forgiven if borrowers agreed to maintain payroll. The new questions for businesses in the nine-page questionnaire — which the SBA said borrowers must complete within 10 business days of receiving it — ask for details on quarterly revenue, capital expenditures, dividend payments and whether any employees earned more than $250,000.
