If you’re wondering how long it will take to get approved for a PPP loan , the answer depends on a few factors. Keep reading to learn more about the PPP loan approval process.
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What is a PPP Loan?
A PPP loan is a loan that is part of the Paycheck Protection Program, which is a government initiative that offers loans to small businesses and organizations that have been affected by the coronavirus pandemic. The loans are meant to help businesses with their payroll and other expenses so that they can keep their employees on the payroll and keep their businesses running.
The approval process for a PPP loan can take a few days to a few weeks. The first step is to apply for the loan through your bank or another lending institution. Once you have submitted your application, the lender will review it and determine whether or not you are eligible for the loan. If you are eligible, the lender will then send you an offer letter with the terms of the loan.
Once you have accepted the offer, the lender will send your application to the Small Business Administration (SBA) for final approval. The SBA will review your application and make sure that all of the information is in order before they approve your loan. Once your loan has been approved, you will receive the funds within a few days.
It is important to note that not all lenders are currently participating in the PPP program, so it is important to check with your bank or another lending institution to see if they are offering loans through this program.
How Long Does It Take to Get Approved for a PPP Loan?
The answer to this question largely depends on the lender that you are working with. Some lenders are able to approve and fund loans in as little as 48 hours, while others may take a week or longer.
If you are approved for a PPP loan, the SBA will guarantee 100% of the loan and it will be forgiven if used for eligible payroll costs, rent, mortgage interest, or utilities during the covered period (up to 24 weeks).
You can check out our list of recommended PPP lenders here.
How to Get Approved for a PPP Loan
The process of getting approved for a Paycheck Protection Program (PPP) loan can be a bit lengthy. The Small Business Administration (SBA) is currently processing a large number of applications, which can cause delays. In order to get approved for a PPP loan, you will need to fill out an application and submit it to the SBA. The SBA will then review your application and make a decision.
To be eligible for a PPP loan, you’ll need to work with an SBA-approved lender. There are thousands of participating lenders, including banks, credit unions, and nonbank lenders. You can use the SBA’s Find a Lender tool to get started.
The SBA has designated certain types of lenders as “Preferred Lenders.” These lenders may be able to streamline the PPP loan approval process because they’ve already been approved by the SBA to participate in the program. You can check to see if your lender is a Preferred Lender on the SBA’s website.
In general, you’ll need to provide your lender with some basic information about your business, such as your business name and address, the names of your owners, and your tax identification number. You’ll also need to provide some financial information about your business, such as your annual revenue and payroll expenses.
To be eligible for a PPP loan, you must:
-Have proof that your business was operational on February 15, 2020
-Have paid employee salaries and payroll taxes
-Be able to show that your business has suffered financial hardship due to the coronavirus pandemic
-Use the loan for eligible expenses, such as payroll, rent, utilities, or mortgage interest
If you are a sole proprietor or independent contractor, you can apply for a PPP loan if you meet the following criteria:
-You had an active business on February 15, 2020
-You had self-employment income
-You experienced a reduction in self-employment income due to the coronavirus pandemic
What Happens if You’re Not Approved for a PPP Loan?
If your application is denied, you will receive a notice from the SBA explaining why your loan was not approved. You may then reapply for a PPP loan with another lender.