SBA EIDL Funding Timeline: What To Expect During Application, Approval, & Processing
The Economic Injury Disaster Loan program through the SBA is a long-standing program intended to help businesses hurt by tornados or wildfires. After the national disaster was declared in March 2020, funds became available to help small businesses impacted by the pandemic. As part of the CARES (Coronavirus Aid Relief and Economic Security) Act, the Federal government gave the EIDL program a boost, which included $10 billion for $10,000 advances/grants given to small businesses impacted by the Coronavirus pandemic. These funds are separate from the Payroll Protection Program, both of which saw an influx of applicants during the past two weeks but operate as additional avenues to seek financial assistance.
For other resources related to small business and the coronavirus, check out our COVID-hub updated with information.
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How Long Is The EIDL Funding Timeline?
After applying for an EIDL, most applicants will receive a funding decision within 21 days. If approved, disbursements are typically made within a week. However, be aware that the EIDL approval timeline can vary based on how many applications the SBA is processing.
EIDL Funding Timeline: From Application To Account Deposit
Need to know each step in the EIDL funding timeline? Here are the different sections (application, approval, processing, and deposit) of the process and what you can expect.
Depending on how much information you have ready, the EIDL application shouldn’t take you more than an hour or so. The SBA You can apply online directly through the SBA’s website. The application consists of a screening page, a business information page, a business owner page, a page for additional information, and a summary.
If you want the process to go quickly, make sure you have your tax information handy.
This is the part that eats up the most time. The ways of the SBA are mysterious indeed, but whatever they do takes around 21 days. Unfortunately, there’s not a whole lot you can do here other than check on the status of your EIDL application.
Processing & Account Deposit
The SBA language states that after approval, funds should appear within five days. Many businesses experienced longer waits in the program’s last phase, however.
As we aren’t far enough out from the beginning of the new round of funding, it’s unclear whether things are running closer to schedule this time around.
How Long Will It Take To Get The Targeted EIDL Grant?
In 2020, it was possible to get a portion of your EIDL loan as an emergency advance grant. That’s no longer the case. Instead, the SBA is rolling out a targeted EIDL grant aimed at businesses in low-income areas that have suffered a revenue loss due to COVID. In short, you may qualify for a targeted EIDL grant if:
- You previously applied for an EIDL Grant but didn’t receive the full $10,000.
- Your business is located in a low-income community.
- You can demonstrate a 30% loss of income due to the COVID pandemic.
This will rule out a large number of small businesses that qualify for an EIDL loan.
So, for those who do qualify, how long will it take to get a targeted EIDL grant? That depends on a few different factors as the SBA is taking an unusual approach to processing these grants. As of right now, you can’t actually apply for Targeted EIDL grants at all.
So what is happening? On February 1, 2021, the SBA started sending out email invitations to businesses that received EIDL Advances (the previous iteration) in amounts less than $10,000. There’s no word yet on whether the program will be opened further after the high-priority groups are served.
If you do receive an email invitation from the SBA, the timeline to fulfillment is similar to that of the EIDL loans. The SBA estimates that it will take around 21 days to process your case.
Disaster Loan Funding Timeline: Final Thoughts
The COVID-19 pandemic has been an unprecedented economic disaster affecting many industries, small businesses, and workers. EIDL loans, along with the PPP, are the biggest lifelines around for many small businesses. No one wants to hear they have to wait for a life preserver when they’re drowning. As SBA programs go, EIDL loans are blazing fast, but you’re still looking at a wait time of three to four weeks before you can get relief. Unfortunately, the only part of the process you really have any control over is the application, which you can accelerate by having documents and information handy when you’re filling it out. Still, that only accounts for hours, not days.
Not sure the EIDL loan is the best remedy for your COVID slump?
The PPP operates a little differently and maybe a better fit for your circumstances. If you run a live venue and have suffered economic damages related to COVID, you may also want to consider a Shuttered Venue Operator Grant. This is a new program that offers large, 100% debt-free grants to qualifying businesses. The qualifications are pretty strict, however, so make sure you’re eligible before you apply.
If I had a dollar for every time I read “unprecedented times” in an article or a Facebook status, I’d be treating myself to an inflatable hot tub for my quarantine days. But the phrase is ubiquitous because it’s a quick way to state the extraordinariness and confusion of this past year. As a company that prides itself on helpfulness, it’s difficult when there are so many question marks littering the landscape.
In this particular situation, it’s best to be armed with documents and then be prepared to wait. In the meantime, you can also research and check into other lending options. How has your experience been with the EIDL process? Let us know in the comments.