When Will My Paycheck Protection Program (PPP) Loan Be Funded?

The COVID-19 pandemic hit hard and fast, leaving many business owners reeling. From full closures due to government mandates to sudden changes in operations, businesses have had to move quickly to keep their doors open and keep their employees on staff. Relief through the Small Business Administration’s Paycheck Protection Program (PPP) has helped hundreds of thousands of businesses in the United States stay afloat during these difficult times.

When it comes to PPP loans, time is of the essence. Business owners must apply quickly to secure loans before the funds are exhausted. But there’s another timeline that financially-strapped business owners don’t have control over: when loan funds will be disbursed. In fact, a common question we’ve seen lately is when will PPP loans be funded? Well, look no further because we have the answer!

In this post, we’re going to help you get an idea of when will the PPP money be distributed. Different lenders have different policies, some businesses may face delays, and not every loan timeline will be identical. However, we’ve looked at lender policies, SBA guidelines, and comments and complaints from business owners just like you to help determine the timeline for PPP loans, from the time you submit your application to loan disbursal. Whether you’re not-so-patiently waiting to receive your loan or you’re still weighing the pros and cons of applying for a PPP loan, keep reading to learn more about the PPP funding timeline.

What Is The PPP Loan Funding Timeline?

The time it takes to complete and get approval for your PPP loan application varies by lender. Once approved, the SBA requires lenders to disburse funds within 10 calendar days. Your loan is considered approved once the SBA assigns you a loan number.

In general, the PPP loan funding timeline is around two weeks, from when you submit your application to the time the lender disburses funds. Note that this timeline may vary based on a number of factors, such as the lender you select and whether additional information is needed to process your application.

PPP Funding Timeline: From Application To Loan Disbursal

A general timeline for receiving your SBA funds is around two weeks in most cases. Let’s break down each step of the PPP process so that you know exactly what to expect.

PPP Application

The first step to securing your PPP loan is to fill out your loan application with a PPP-approved lender. The SBA has a PPP lender search tool that makes it easy to find your lender. You can also check out our list of top online PPP lenders.

If you haven’t previously received a PPP loan, you will fill out the first draw PPP application. This application is relatively straightforward and shouldn’t take long to complete. In addition to your application, you’ll also need to submit documentation. Paperwork requirements vary by lender but may include tax forms, payroll records, and documentation showing a reduction in gross receipts.

If you have previously received a PPP loan, you will fill out the second draw application. This application is also fairly straightforward and easy to complete. Additional documentation requirements vary by lender.

This step of the process is quite easy, especially if you already have all of your documentation in order. Overall, expect this step to take anywhere from around 15 minutes to an hour. Once the lender receives your application and documentation, the next step is waiting for your loan approval.

Loan Approval

When everything has been submitted to the lender, the next step is for the lender to submit this information to the SBA. This is done through the SBA’s E-Tran system, an online portal that has shortened the approval time for SBA loans.

This system has made it quicker and easier to get SBA loan approval, but it isn’t without its flaws. Thousands of applications coming through the system have led to some delays. While it is possible to get approval within a day or so, these potential delays could extend your funding timeline.

According to many participants in the first round of PPP loans, the biggest delays were seen across larger banks and financial institutions that were processing thousands of applications. On the other hand, many borrowers that used smaller lenders reported faster approval times.

While you may receive approval as quickly as a day or two after submitting your application to your lender, remember that there may be unavoidable delays. Talk to your lender about loan approval times, and find out how updates are provided about your loan’s status. This may include logging into your online account or receiving an email with your loan number.

Expect this process to take about a week, although, again, there may be delays. If you haven’t heard back from your lender within their estimated timeline, consider calling the lender or sending an email to find out about your loan’s status.

Processing & Account Deposit

Once your loan has been approved, your lender will begin processing the loan before funds are added to your account. Per the SBA, “a loan is considered approved when the loan is assigned a loan number by SBA.”

The SBA further clarifies how long the lender has to disburse funds: “The lender must make a one-time, full disbursement of the PPP loan within ten calendar days of loan approval.”

So if your loan was approved on February 8, the lender has until February 18 to disburse your funds. If you do not have loan funds in your account based on the 10-day timeline, contact your lender to ensure that there weren’t any problems, such as an incorrect bank account number.

One last thing to be aware of is that some borrowers reported frozen bank accounts or holds put on their PPP funds. If this happens to you, contact your bank immediately to find out the next steps. In some cases, you may be able to have the hold lifted or the account unfrozen by providing your loan documents, proof of identity, and other documentation.

When To Expect PPP Funds: Final Thoughts

The big question here is this: How long until PPP loans are funded? Every PPP loan is different, so it’s not always easy to figure out when to expect PPP funds to arrive in your bank account. Fortunately, there are SBA guidelines in place to make sure that you get your loan promptly. From start to finish, the process typically takes about two weeks, although some borrowers are receiving funds quicker than that. As long as you stay involved in the process, keep in touch with your lender, and understand how the PPP loan process works, you should be seeing your money in no time at all. Good luck!