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SBA EIDL COVID-19 Disaster loan exact timeline and what to expect processing times

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  • SBA EIDL COVID-19 Disaster loan exact timeline and what to expect processing times

    I have applied for and obtained these for a number of clients. Although the Covid-19 EIDL loan was supposed to come in at up to two million, actually the cap was set at more like $400,000. and more recently has been lowered to $150,000. with most offers coming in around $25,000.

    There is no personal guarantee required for any loan under $200,000. All loans over $25,000. require a security interest against collateral of the business, but the status of this collateral is not verified.

    Loans are amortized over a 30 year period at 3.75% for most businesses, and 2.75% for non-profits. There are no payments due for the first 12 months.

    There are two portions to an EIDL: the grant portion (paid to you in advance of the loan processing), capped at $10,000. (at the rate of $1000. for each employee) does not need to be repaid, and is deposited into your account soon after you make the application, as long as the application passes some preliminary verification of the valid status of the business entity. Even if your loan is eventually denied the grant advance is yours to keep.

    Nothing is really verified other than the status of the business as a valid entity, and with some sole proprietorships not even that is verified, but for all of these EIDL loans a personal credit report is run with Experian.

    The application starts here:
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    And the short form which has been in place since April 2020, looks like this as you move through the application process:
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    With these initial questions you must check all of the boxes or else you will be declined.

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    Pretty standard information but this line:
    Click image for larger version  Name:	NumberEmployees.jpg Views:	0 Size:	25.1 KB ID:	94362
    will determine how much you get in your advance.

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    Answering Yes to either of the first two questions will result in outright denial of your application. Answering Yes to the third question will result in further scrutiny and a background check.

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    Of course you will want to check the box to be considered for the advance.

    There are ways to package these applications so that they are approved, and approved quickly, and also to speed along the processing times. Hire me for help to get the most you can for your business.
    Please read the forum rules before you post.

    And if you need extra help:
    Modee Tech Support

  • #2
    This is the timeline experienced by one of my clients:

    Applied April 4, 2020
    Click image for larger versionName:	Covid19Loan_applied_confirm_redact.jpgViews:	0Size:	192.2 KBID:	94365
    At this time be sure to log the application control number in case you need it in the future, by taking a screen shot of the application number. SBA EIDL loan -
    Application Submitted

    April 14, 2020 Received confirmation email of application - Dear Applicant - TEN DAYS

    Click image for larger versionName:	InitialSBA_email.jpgViews:	0Size:	417.5 KBID:	94364

    This email is very generic, but lets you know that the application was received and logged properly.

    May 1, 2020 $3000. (three employees) advance grant money ACH deposited into business account - SBAB TREAS MISC PAY - 27 DAYS
    Click image for larger versionName:	EIDL_3K_advance_redact.jpgViews:	0Size:	17.5 KBID:	94366
    You will receive no advance notice of this, and it will be deposited automatically via ACH, at the rate of $1000. per employee indicated on your application. There will be no communication from the SBA between the time of your receiving the email confirmation of your application, and this deposit.

    May 15, 2020 Experian personal credit run - 41 DAYS
    Click image for larger versionName:	Experian_CreditAlert.jpgViews:	0Size:	13.6 KBID:	94367

    Some applicants online have stated that their credit was run twice, but for my clients, their credit was run once only. The credit run is the credit of the primary or sole business owner identified in the application.

    May 31, 2020 Directed via email to Create SBA Economic Injury Disaster Loan Portal - 57 DAYS - SBA EIDL loan - Create account
    Click image for larger versionName:	SBA_createSBAAccount.jpgViews:	0Size:	173.4 KBID:	94368

    Within this portal you will need to do a couple of things, primarily verify your identity via some questions:
    Click image for larger versionName:	SBALoan_IdentityVerify_redact.jpgViews:	0Size:	150.7 KBID:	94369

    and also accept the amount of loan. At this point you may move the slider to less than the full amount you have been tentatively approved for. While in most cases you will want to accept the full amount, if what you have been approved for is just above one of the thresholds:
    -$25,000 - requires collateral
    -$150,000 - requires personal guarantee
    you might want to accept JUST UNDER the amount that triggers these two requirements:

    Click image for larger versionName:	SBALoan_Accept_redact.jpgViews:	0Size:	230.6 KBID:	94370

    After you have clicked to accept the amount of loan, the
    Application will go to the status of PROCESSING - SBA EIDL loan - Your application is being processed
    Click image for larger versionName:	SBALoan_Processing_redact.jpgViews:	0Size:	196.3 KBID:	94371

    Keep in mind that even at this point you may still be declined, as the final approval for the loan has not yet been made.

    June 3, 2020 received call to verify that made application due to fraud alert on Experian credit - 60 DAYS
    My client received a call to verify that he had made the application, because he has a fraud alert on his Experian. For this particular client, he missed the two times the SBA called, but the loan processor left a message and he called back.

    After simply confirming that yes, he had made the application, for this particular client the processor explained that her job was to make sure that everything was in place in the application, and then send it to a manager for final approval.

    As far as phone calls to the SBA - don't do it. Not to tier 2 not to tier anything. This will not speed up your application and will be a complete waste of time. If the SBA calls you - and leaves a message - do call back, but otherwise, just trust in the process and leave it alone. There are some tricks to get you processed faster but phoning the SBA is not one of them.

    June 3, 2020 late night, application status - 60 DAYS
    APPROVED - SBA EIDL loan - Your application has been approved

    Email received:
    Click image for larger version  Name:	Covid19_application_ApprovedEMAIL_redact.jpg Views:	0 Size:	187.6 KB ID:	94377

    and the portal will also now show the approved status:
    Click image for larger versionName:	SBA_loan_Approved_redact.jpgViews:	0Size:	199.7 KBID:	94372

    And this client then signed his closing loan docs the same night.
    Click image for larger versionName:	SBA_loan_DocsSignedCompleted_redact.jpgViews:	0Size:	192.5 KBID:	94373
    and is now simply waiting on funds to be ACH transferred into the same account where he received the $3000. advance.
    LOAN DOCS DOCU-SIGNED online.
    Please read the forum rules before you post.

    And if you need extra help:
    Modee Tech Support

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    • #3
      The client depicted above, who signed docs June 3, 2020, today (June 9, 2020), received the deposit into the company bank account.
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      Attached Files
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      • #4
        SBA EIDL loan timeline:

        Applied April 4, 2020

        April 14, 2020 Received confirmation email of application – 10 DAYS

        May 1, 2020 $3000. (three employees) advance grant money ACH deposited into business account – 27 DAYS

        May 15, 2020 my Experian personal credit run – 41 DAYS

        May 31, 2020 Directed via email to Create SBA Economic Injury Disaster Loan Portal – 57 DAYS

        Verified Identity
        Application went to status of PROCESSING

        June 3, 2020 received call to verify that made application due to fraud alert on Experian credit – 60 DAYS

        June 3, 2020 late night, application status
        APPROVED

        LOAN DOCS DOCU-SIGNED online.

        June 9, 2020 $29,400. deposited – 66 DAYS
        Please read the forum rules before you post.

        And if you need extra help:
        Modee Tech Support

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