No re-verification is required for existing bank customers. In addition, if your bank has not yet collected beneficial ownership information from existing customers, you do not need to collect and verify beneficial ownership information for customers applying for new PPP loans, unless your BSA policies and procedures require otherwise. Before entering into a Change of Ownership transaction, the PPP borrower must inform the bank in writing of the proposed transaction and provide the bank with a copy of the proposed agreements or other documents that would complete the proposed transaction. To obtain the processing fee(s) due, the bank must have provided: (i) ACH credit information for an account of the bank; and (ii) make the one-time confirmation (described above). For new customers of a bank, the bank should collect at least the following information from all natural persons holding a 20% stake in the applicant`s business or more: (i) name and title of the owner, (ii) share of ownership, (iii) TIN, (iv) address and (v) date of birth. If a ownership interest of 20% or more in the applicant`s business belongs to a company or other legal person, banks must collect appropriate beneficial ownership information for the owners of that entity. If your bank`s BSA policy requires additional custom due diligence (CDD) to be performed, the bank should follow these policies and withdraw those fixed-term contracts. However, the CFP has published additional guidance on the requirements of Regulation B with regard to PPP loans. In accordance with these guidelines, an application for PPP credit filed with the SBA is not considered a „completed application“ and the notice period for such a PPP credit application only begins when the bank receives a credit number for such a PPP loan from the SBA or a response from the SBA regarding the availability of funds under the PPP. If the bank has applied for PPP credit with the SBA, but has not received a credit number or response regarding the availability of funds under the DEPP programme and the application for PPP credit is otherwise complete, the bank cannot reject the application due to incompleteness or submit a notification of incompleteness. because a credit number or response from the BSO is not information that an applicant can provide to the bank. Like other types of credit, Regulation B can only refuse an application for PPP credit if the application is incomplete with regard to the information that the applicant can provide and if the bank does not have sufficient data to make a credit decision.
It is also apparent from the instructions on the form that the information requested – replies to the questionnaire and supporting documents – must be provided within ten working days following a request for information from a lender. The SBA states that additional information may be requested from a borrower to grant the pardon and that failure to complete the form may „lead to a finding that you have not benefited from the PPP loan, the amount of the PPP loan or a requested pardon amount, and SBA may request repayment of the loan or pursue other available remedies.“ Form SBA 3509 also contains other certifications regarding the accuracy of responses and warns that misrepresentation can result in criminal penalties under several federal laws. In addition, not-for-profit hospitals exempt from tax under Section 115 of the Internal Revenue Code are treated as the definition of a „not-for-profit organization“ as defined in Section 1102 of the CARES Act, where the hospital reasonably finds, in a written record kept by the hospital, that it is an organization described in Section 501(c)(3) of the Internal Revenue Code and that, therefore, establishes a category ï belongs to organizations exempt from taxation under Section 501(a) of the Internal Income Code. . . .