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.