Why Is My PPP Loan Still Processing?

If you’re wondering why your PPP loan is still processing, you’re not alone. Here’s what you need to know about the PPP loan process and how long it might take.

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PPP Loan Basics

The Paycheck Protection Program (PPP) loan is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The PPP loan is 100% federally guaranteed and offers forgiveness of the loan amount if borrowers maintain their pre-COVID-19 employment levels or can demonstrate use of loan proceeds for eligible payroll and non-payroll expenses.

What is a PPP loan?

The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll during the COVID-19 crisis.

The PPP offers loans with low interest rates and long repayment terms to small businesses that maintain their payroll during this difficult time. If you keep your employees on the payroll for eight weeks, you can apply for loan forgiveness for the full amount of the loan, plus any interest and fees.

The PPP is part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27th, 2020.

How do I apply for a PPP loan?

There are many factors that go into the decision of whether or not to apply for a PPP loan. The most important factor is whether or not you will be able to use the loan proceeds for their intended purpose: to keep your employees on payroll and help your business continue to operate during the COVID-19 pandemic.

To apply for a PPP loan, you will need to fill out and submit a PPP loan application form. The form can be found on the Small Business Administration (SBA) website. Once you have submitted the form, your lender will review it and make a decision on whether or not to approve your loan.

If you are approved for a PPP loan, the next step is to sign and return the promissory note that outlines the terms and conditions of the loan. Once you have done this, your lender will disburse the loan funds to you.

Common Reasons for PPP Loan Processing Delays

SBA Loan Portal Issues

One of the most common reasons for delays in PPP loan processing is issues with the SBA loan portal. If you applied for a PPP loan through a lender that is not already approved by the SBA, your loan could be delayed while the lender waits to be approved.

In addition, the SBA loan portal has been plagued with technical issues since it launched on April 3. The portal has been down for maintenance multiple times, and many lenders have reported difficulty accessing the system or submitting loans for approval.

If you applied for a PPP loan and your lender is having trouble accessing the SBA loan portal, your loan could be delayed until the issue is resolved. You can check the status of your PPP loan by logging into your account on the SBA website or by contacting your lender directly.

Incomplete or Incorrect Application

One of the most common reasons for delays in PPP loan processing is an incomplete or incorrect application. Lenders are required to verify certain information on the application, including business size, ownership percentages, and payroll costs. If any of this information is missing or incorrect, it can delay the processing of your loan.

Another common issue is that businesses do not have the required documentation to support their loan request. For example, businesses must provide proof of payroll costs in order to qualify for the PPP loan. If you do not have the necessary documentation, your lender will not be able to process your loan until you provide it.

It is important to make sure that your PPP loan application is complete and accurate before submitting it to your lender. Taking the time to double-check your information will help ensure a smoother and faster process.

Insufficient Collateral

One of the most common reasons for PPP loan processing delays is insufficient collateral. The SBA requires all PPP loan applicants to provide collateral in the form of personal guarantees from all principal owners of the business. If your business does not have enough equity to cover the loan amount, you may be asked to provide additional collateral. This can often be in the form of real estate or other valuable assets. If you are unable to provide adequate collateral, your loan application may be delayed or even denied.

How to Avoid PPP Loan Processing Delays

The Paycheck Protection Program (PPP) loan is a forgivable loan that is available to small businesses and self-employed individuals in order to help them cover the costs of their payroll and other expenses during the COVID-19 pandemic.

Check the SBA Loan Portal for Updates

If you have applied for a PPP loan and are wondering why it is still processing, the best thing to do is check the SBA Loan Portal for updates. You can find the portal by going to the SBA’s website and scrolling down to the “Paycheck Protection Program” section.

If your loan is still in “Application Submitted” status, it means that your lender has not yet submitted your loan for approval. You should contact your lender to find out what the status of your loan is and when you can expect it to be approved.

If your loan is in “Application in Process” status, it means that your lender has submitted your loan for approval and it is currently being processed by the SBA.processing times will vary depending on the volume of applications they are receiving. You can check back on the portal periodically for updates on the status of your loan.

If you have any other questions about why your PPP loan is still processing, you can contact the SBA directly at 1-800-659-2955 or reach out to your lender for more information.

Complete and Submit Your Application Correctly

One of the best ways to avoid PPP loan processing delays is to complete and submit your application correctly the first time. The Small Business Administration (SBA) has released a number of updates and guidance documents since the Paycheck Protection Program (PPP) was first established in March 2020. Make sure you are using the most up-to-date application form and that you have gathered all required documentation before you submit your application to your lender.

It is also important to note that the PPP has undergone several changes since its inception. Be sure you are aware of all program changes and requirements before beginning your application. You can find updates and guidance on the SBA website or by contacting your lender directly.

If you have already submitted your PPP loan application, there are a few things you can do to check on its status:

-Contact your lender directly. They should be able to provide you with information on where your application is in the process and what, if any, additional information they may need from you.

-If you applied through an SBA-approved lender, you can check on the status of your loan through the SBA Lender Match tool.

-You can also check with the U.S. Chamber of Commerce’s PPP Loan Tracker

Have Adequate Collateral

To avoid delays in PPP loan processing, it is important to have adequate collateral. Collateral is an asset that can be used to secure a loan. The most common type of collateral for PPP loans is real estate. Other assets that can be used as collateral include vehicles, savings accounts, and certificates of deposit. Adequate collateral will make it easier to obtain a PPP loan and will also help to keep interest rates low.