Business Loans

PPP Loans: What Happens After You Apply?

Jan 13, 2021 • 5 min read
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      UPDATE: The PPP loan application period ended May 31, 2021. Learn about financing options available for small businesses today at

      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 an SBA Loan 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 an SBA loan number, the underwriting process begins. The SBA allows 10 calendar days for the lender to complete underwriting and disburse funds, starting on the day an SBA loan 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. 


      “Lendio strives to provide you with the most current information as it relates to the Paycheck Protection Program, related SBA programs, and relevant regulations. The rules and regulations governing these programs are being regularly clarified by the SBA, and other agencies. In some cases, the provided guidance may directly conflict with other competing guidance, laws, rules, or regulations. Due to these changes, Lendio cannot guarantee that the information contained in this page reflects new changes or updates.
      Lendio advises you to review the SBA guidelines and regulations on your own and determine your Company’s best approach to receiving SBA loans. Lendio urges you to consult your own attorneys, lawyers, and consultants to make the best decision possible. The information contained herein should not be construed as legal or tax advice, and should not be relied upon as such.”
      About the author

      Lendio's team of experts is here to help you with every nook and cranny of your business. We'll make sure you have the best advice for financing, operations, management, hiring, and much more.

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