How long does it take for PPP Loan to be Deposited?

The Covid-19 pandemic has hit us more than we can think of. While the pandemic blew the medical infrastructure, it also left many business owners stumbling to find stability. There has been some relief from the Small Business Administration through their Paycheck Protection Program also known as PPP Loan. This provision has enabled countless businesses to stay afloat in these tiring times.

The PPP Loan Funding Timeline

The time taken to complete and approve the PPP loan application differs from lender to lender. Once the loan is approved, the SBA requires lenders to expend funds within ten days. The loan is considered approved once the SBA assigns a loan number. Ideally, the PPP loan funding process takes around two weeks. The timeline is calculated from when you submit your application to when the lender expends funds. Here is the breakdown of the entire PPP loan disbursal timeline:

PPP Application

Filling out the PPP loan application with an approved lender is the first step to securing your PPP loan. The SBA has made it easy to find a PPP lender via the search tool. In addition to your application, you must submit certain documents, such as income tax forms, documents depicting a reduction in gross receipts, and payroll records. This step does not involve much hassle and may take only 15 minutes to an hour to complete the form, as long as your documents are in order.

Loan approval

Once the application and documents have been submitted to the lender, the lender submits the information to the SBA. This document submission is made via the SBA’s E-Tran system, an online portal that shortens the approval time for SBA loans. This system has enabled quicker and easier SBA loan approval. Countless applications coming through the system have led to some delays. While one may receive the loan approval in a day or two after applying to the lender, there may be delays due to unavoidable circumstances. If you do not hear back from the lender within the estimated timeline, feel free to call the lender with your loan number for an update.

Processing and Account Deposit

Once the loan has been approved, the lender will begin to process the loan before funds are expended into your account. As per the SBA guidelines, a loan is considered approved once the loan number is assigned. Furthermore, the SBA states that the lender must make a complete disbursal of the funds in one go and within ten calendar days of loan approval.

Financial Thoughts

Now that we have answers to all our PPP loan approval questions, we know that getting a PPP loan is not very tiring. However, this process may take two weeks to disburse the funds into your account. If all goes smoothly, you should have the funds at your disposal in no time!