A loan officer takes over your case to work with you to receive any additional information, review insurance or other recoveries, and recommend a loan amount. We strive to make loan determinations within 2–3 weeks after receiving complete application packages. Loan closing documents are prepared for your signature.
Contact customer service to check on status at 1-800- 659-2955 (1-800-877-8339 for the deaf and hard of hearing) or DisasterCustomerService@sba.gov.
The SBA promises a turnaround time of 36 hours for their express loans. But, that doesn't include the time it takes for the lender to approve the loan, which could tack on another few weeks. So, instead of 60-90 days, you're looking at 30-60 days for the SBA loan processing time when all is said and done.
The SBA calculates your total possible EIDL loan amount based on your 2019 revenue and your cost of goods sold. You can check the total amount you qualify for by using the calculator on your Skip dashboard, or sign up here. However, that does not mean that you will be approved for that amount.
Due to the influx of applications, the SBA may take longer than usual to approve you for a loan. If you applied for the SBA's Paycheck Protection Program (PPP) loan, note that you can still apply for other SBA disaster loans. The only caveat is that you can't use both loans for the same business purpose.
One of the main reasons SBA disaster loans are denied is the “inability to repay.” The SBA may believe that you don't have enough cash flow or your credit utilization is too high.
After receipt of the signed documents the funds are direct deposited typically in 3 -5 business days. If collateral is required for the loan SBA will prepare a partial disbursement of $25,000 to submit to the borrower and release the remaining funds once all collateral is appropriately secured.
The SBA announced this late yesterday, and it's welcome news for the high percentage of people who've been denied. Of all of the people who've had a decision with regards to their Targeted EIDL Advance, 60% have been approved and 40% have been denied.
Apply for $10K EIDL Grant or Tell A Friend Before It's Too Late. Millions of small businesses have not applied for the $10,000 Targeted EIDL Advance. If you think you're eligible, you can apply on the SBA website or via your SBA portal. Time may be quickly running out for businesses to take advantage of these grants.
Once a borrower applies for an EIDL, approval timelines can vary depending on volume. Typically, a decision is made within 21 days of application, and disbursement of money within five business days. Borrowers are assigned individual loan officers for servicing the loan.
EIDL Credit Checks
As we explained in our article, FAQs about EIDLs, acceptable credit is a requirement for these disaster loans. There will be a personal credit check for all applicants, plus a business credit check for all applicants except sole proprietors for loan amounts above $200,000.
If you're approved for an EIDL loan, you'll be sent an email with details on how much you're eligible to borrow. Once you sign the agreement, loan proceeds will be deposited into your business bank account within five to 10 business days.
Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole.
Making false statements to obtain an SBA loan can result in serious criminal penalties. A person convicted for a federal crime relating to loan fraud faces federal prison time and steep fines.
When it comes to SBA disaster loan credit score requirements, there's no hard and fast minimum credit score you'll need for approval. However, the SBA usually wants to see a credit score of 620-650 or higher. If you aren't quite at that mark, you might still qualify for a disaster loan.
How many times can you apply for an SBA loan? There's no limit to how many times you can apply for an SBA loan. The only limitation is for special long programs, like the Paycheck Protection Program (PPP). Borrowers can only draw twice from the PPP loans at this time.
Like many small business owners, your business exists as an extension of yourself. It is your identity and your hard work. However, you cannot use you SBA loan to pay off your personal debt, such as credit cards, mortgage or other debts.
At large banks, the approval rate for business loans, including SBA loans, is only around 25%. At small banks, the approval rate is higher—sitting around 49%—but more than half of borrowers still get turned away. So if you have been denied for an SBA loan, you're certainly not alone.
First, buying a home clearly falls outside the intended uses of EIDL. It appears that buying a vehicle does as well, even if it is a business purchase. Remember that ineligible uses of EIDL proceeds include “acquisition of fixed assets” and fixed assets usually include vehicles.
Can I Use The EIDL Loan To Buy A New Vehicle If The Vehicle Is Pivitol to My Business? Yes. If you would normally purchase a new vehicle to replace an old one, that is considered a normal operating expense.
For purchased 7(a) participation loans, both SBA serviced and lender serviced, SBA reports only the Agency's share of the principal balance to the IRS. The participating lender is responsible for reporting its share of the discharged debt.
The Small Business Association (SBA) does not specify a minimum credit score required to secure an SBA loan. However, SBA loans are provided by lenders who may have minimum score requirements. Typically, this minimum is 620 to 640. However, the higher your score, the more likely you are to receive approval.
But remember, the SBA loan will come through a lender, and they have no problem doing so. For the SBA 7(a), this means a minimum score of approximately 640. But you'll increase your chances to be approved for an SBA loan with a minimum credit score of 680 or higher.
As of January 1, 2022, SBA stopped accepting applications for new COVID-19 EIDL loans or advances. As of May 6, 2022, SBA is no longer processing COVID-19 EIDL loan increase requests or requests for reconsideration of previously declined loan applications due to a lack of available funding.
You want a second EIDL.
You may apply for only one COVID-19 EIDL. But if your business is located in a declared disaster area and it experienced additional economic injury, you may apply for a separate EIDL as well as a COVID-19 EIDL.