Congratulations! You just finished applying for a Paycheck Protection Program (PPP) loan. We understand that the waiting period between hitting “submit” on your application and the day you receive funds can be stressful. You may be feeling anxious, wondering, “What is going on with your application?”
We’d love to help ease your mind a bit by giving you a peek behind the curtain. We harness the power of technology to make your application process as seamless as possible. That said, once you apply, there’s a lot of manual legwork that needs to be done. We assure you that we’re working around the clock to help you get funded as quickly as possible. If you’re wondering why it’s taking some time to receive a loan decision or loan funds, here’s everything that happens after you apply.
You can also find answers to some common questions in the FAQs about the Paycheck Protection Program (PPP).
We Verify That Your Application Is Complete
Once your loan application is submitted, our loan specialists work through your application to ensure that it is complete. Our loan specialists will review your submitted documentation to ensure that everything appears to be in line with SBA requirements for a PPP loan.
If we find anything that’s missing, you’ll be notified. Keep an eye on your borrower portal and email. If it says your application is incomplete or you’re missing information, we need to complete it before you can move onto the next step.
We Send Your Application to the Lender
Once we’ve confirmed that your application is complete, it’s submitted to the lender.
The Lender Submits Your Application to the SBA
Your lender continues the funding relay race by submitting your application to the SBA. During this round, the SBA may perform some fraud prevention.
The SBA Makes an Initial Loan Decision
After reviewing your application, the SBA makes an initial loan decision. One of 4 things will happen here:
- The SBA will issue a Preferred Lending Partner (PLP) number for your loan. This number indicates that funds are reserved for your loan. Your loan now just has to go through the underwriting process before it can be disbursed.
- The SBA will request more information/documentation.
- If your First Draw loan is currently under review by the SBA: The SBA will reject your application while they finish reviewing your First Draw loan.
- The SBA may reject your application.
Your Loan is Submitted for Underwriting
Once the SBA issues a PLP number, the underwriting process begins. The SBA allows 10 calendar days for the lender to complete underwriting and disburse funds, starting on the day a PLP number is issued to a borrower.
If the lender cannot disburse funds due to a delay caused by the borrower, the lender has 20 calendar days to disburse funds. This can generally mean missing paperwork or additional required documentation. If the borrower has not provided the necessary information at the end of that time frame, the loan will be canceled.
What Other Funding Options Do You Have?
As a loan marketplace, we know the value of having multiple funding options. Luckily, Congress agrees. Under the most recent stimulus bill, they have revitalized funding for Economic Injury and Disaster Loans (EIDLs), the Emergency Economic Injury Grants (EEIGs), and the new Targeted EIDL Advances, with additional provisions to ensure this funding goes to the businesses that have been most affected by the pandemic.