Apr 23, 2020

What Happens If a Lender Doesn’t Fund Your PPP Loan Within 10 Days?

To say small businesses are struggling would be an understatement. The coronavirus pandemic has Main Street businesses across America fighting tooth and nail to survive. As a result, there has been enormous demand for loans through the Paycheck Protection Program (PPP). 

Lenders are struggling to work through the immense number of PPP applications they received, and borrowers have been left wondering, “What happens if my lender doesn’t fund my PPP loan within 10 days? Will I still get the funds, or am I out of luck?” We’re learning as we go with this program, so we don’t have all the answers, but here is everything we know. 

Guidance from the SBA states that lenders must make the first disbursement of the loan no later than 10 calendar days from the date of loan approval. With the backlog of applications, some borrowers are nearing or have passed that date. 

We believe that the SBA will do the right thing and make adjustments due to the overwhelming and unprecedented demands. Due to the speed of the PPP rollout, we’ve all had to learn as we go and make adjustments. That includes the SBA, and we hope this is just one more detail that needs to be ironed out. 

We understand that this is a stressful, frightening time for small businesses. We ask for your patience as lenders work overtime to process PPP applications. We’ll continue to work overtime to ensure as many borrowers as possible receive funding— and that we communicate with as much transparency as possible. 

We’re in this with you. 


While every effort is made to ensure the accuracy of information when a story is published, the coronavirus pandemic and Paycheck Protection Program (PPP) have caused details to change at a rapid pace. Additional guidance from the government may change or clarify certain aspects of the forgiveness process and could result in changes to the information contained in these pages. For the most up-to-date information, please visit the COVID-19 section of our website. For more information, you can call us at (855) 853-6346. Lendio is not responsible for and provides no warranty as to the accuracy of this content. Lendio does not provide legal, accounting or tax advice. The information and services Lendio provides should not be deemed a substitute for the advice of such professionals who can better address your specific concern and situation.

About the author

Mary Kate Miller
Mary Kate Miller
Mary Kate Miller is a writer based in Chicago, IL. She specializes in covering finance (personal and business), investing, and real estate. Her mission in life is to give readers the confidence and the knowledge needed to grow their wealth by making financial topics more accessible. When she's not writing about topics like business loans, you can find her playing armchair financial advisor to the Real Housewives.


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