AGC Learns More About Loan Forgiveness for PPP Loans Over $2 Million
AGC remains in negotiations with the U.S. Small Business Administration (SBA) about the potential for a settlement of its Paycheck Protection Program (PPP) lawsuit. The target of that lawsuit is the “Loan Necessity Questionnaire” that has delayed action on many PPP loan forgiveness applications for loans over $2 million. The talks have produced both good and bad news.
The good news is that SBA has yet to deny any of the approximately 460 applications that AGC members have filed for forgiveness of loans over $2 million. The bad news is that SBA has granted only 24 of these applications. Independently, AGC has learned that at least some of these applications are already six months old.
In addition, AGC has learned SBA is regularly going beyond the form and demanding that the applicants for the forgiveness of these loans provide even more information with even less relevance to the certification that borrowers made at the time they applied for their loans.
As the talks continue, AGC retains all of its rights to litigate the matter. Whatever the case, AGC will continue to insist that SBA follow the rules that Congress wrote. The fundamental problem is that the “Loan Necessity Questionnaire” betrays an unlawful effort to rewrite them.
If you have applied for forgiveness of a PPP loan of over $2 million, please take a moment to let AGC know of any action that SBA has taken on your application by emailing Mike.Kennedy@agc.org, as that information could help all construction firms.