The Small Business Administration and Treasury Department have provided guidance clarifying lenders’ obligations to collect beneficial ownership data when making Payment Protection Program loans.
As previously stated, depository institutions making PPP loans to existing customers do not need to re-verify beneficial ownership information if it has already been verified, or to collect and verify data if they have not already done so, unless otherwise indicated by the lender’s risk-based Bank Secrecy Act compliance approach.
In the latest update to their FAQ document on the PPP, SBA and Treasury clarified that lenders making PPP loans to new customers may satisfy beneficial ownership requirements by collecting the name, title, ownership percentage, taxpayer ID number, address and date of birth for natural persons owning at least 20% of a PPP applicant. For legal entity owners of at least 20% of a PPP loan applicant, the lender should collect “appropriate beneficial ownership information for that entity.”
Newly issued FAQs also address nonbank lender eligibility, as well as the applicability of the $10 million loan cap and affiliation rules to franchises, hotel chains and restaurant chains.?