A common issue causing PPP loan approval delays is providing incorrect information on your application, such as: Mismatched or incorrect business info (addresses don't match, etc.) Incorrect tax ID (Social Security Number, EIN)
Given the enormous demand for PPP loans and the loose requirements, lenders are prioritizing applications for borrowers with whom they have an existing relationship. If this is the first time you've applied through a lender, your application will still be considered. You just may have to wait a little longer.
From start to finish, the process typically takes about two weeks, although some borrowers are receiving funds quicker than that. As long as you stay involved in the process, keep in touch with your lender, and understand how the PPP loan process works, you should be seeing your money in no time at all.
If you applied for your PPP loan via Womply, you can check loan application status at https://www.womply.com/ppp-status/. If you did not apply through Womply, you will need to contact your SBA-approved lender and request a status update.
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.
If you have received and signed a contract, but it hasn't been funded, there could be a few reasons. Your application may have errors on the contract, including the wrong name, wrong bank routing number, or incorrect bank account number.
Completing your Paycheck Protection Program application incorrectly—such as not filling out signatures or other fields—can delay the process for weeks. If you haven't heard back from your PPP lender, check over your application and be sure you filled it out completely and correctly.
When your application is approved, SBA will provide you with loan documents that must be completed and signed. Be sure to keep a copy for your records. Loan proceeds are electronically deposited to your bank account within 5-10 business days of the time that SBA receives your completed loan documents.
And If your loan is approved, the SBA will move forward with loan disbursement pretty quickly; loan proceeds should hit your bank account within 5 to 10 business days.
If you get approved for a personal loan through a bank or credit union, you can expect to receive your loan money within one to five days—though some are faster than others.
The current estimate of when the SBA will inform you of the terms you have been approved for is 3-4 weeks. They will send you the approved loan documents for you to review, sign, and return. The SBA will then deposit the funds direct deposit within 3-5 business days.
How long does it take for my PPP second draw loan to be funded? Once your second draw PPP loan is approved by the SBA, by law your lender has 10 calendar days to ensure that the funds are released to your account. This is the same time period as for first-draw PPP loans.
While the majority of loans have been forgiven, some are still being denied by the SBA. Here are the top five reasons why your PPP loan forgiveness might have been denied: Your documents were incomplete. You weren't eligible for the loan.
Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) about the application process, the status of your loan, or with any other questions you may have. If you applied through the COVID-19 portal, the SBA will contact you, but you may be able to get answers by calling the toll-free number.
Paycheck Protection Program (PPP)
Borrowers who need assistance with direct forgiveness can contact SBA at our dedicated forgiveness call center: 877-552-2692. The call center is open Monday through Friday, 8:00 a.m. to 8:00 p.m. ET. The call center can only assist direct forgiveness applicants.
The customer service department of the lender can also help you track the status of your loan application. You may either call or email the customer service department to track the status of your loan.
Need to Know Facts
If you miss the deadline, the SBA will send your lender paperwork naming the amount of your PPP loan that wasn't forgiven. You will owe that amount.
Wire Fraud: If you used a device, like telephone, internet, etc, to defraud an institution in order to gain funds from a PPP loan – you can be convicted of wire fraud. Penalties for wire fraud can include a prison sentence up to 20 years, and in addition – restitution to anyone impacted.
There are several reasons why you might be rejected for a PPP loan: First, you might not meet the qualifications of the program. Second, it might be due to an SBA software issue incorrectly rejecting 2nd time applicants who haven't had their first loan forgiveness.
The SBA's rules say they must fund approved PPP loans within 10 calendar days from the date of approval, although if the borrower hasn't provided correct information then it can be up to 20 days.
If your lender won't process your Second Draw application, and you think you might still be eligible, contact another lender. You must spend all of the money from the First Draw before you can receive money from the Second Draw.
IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program. SBA will accept applications through May 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020.
The SBA loan process
While the process usually takes 60-90 days, this is an estimate. It may take more or less time depending on the type of loan, the lender, how prepared the business owner is and whether the lender needs approval from the SBA before moving forward.
“The SBA will pull (known as a hard pull) your credit prior to providing you with a loan to assess your credit report and score in order to determine your creditworthiness,” Woodley said. Your credit score gives a good indication of whether or not you'll pay your bills.
Lenders have up to 20 days after the date the SBA approves your application to fund your PPP loan. In most cases, this funding happens within 2 to 3 business days after you sign your promissory note. To avoid delays, check your application Status Detail to ensure your bank info is complete.