Exact Answer: After 21 to 22 days
EIDL is a type of loan set by SBA. Organizations like small cooperative houses, some private-sector unions, and secondary companies are eligible for this loan scheme. This is because if they suffered or have been located in any declared disaster area with a substantial economic disaster.
SBA helps these small businesses to set up their work again by providing them an amount of $3 Million. Small businesses are highly helpful by these loans. They can deal with all their financial commitments. So basically what happens is that the amount of loan which will be sanctioned will be based upon your actual economic casualties. You might not have any financial crisis, or your company goes through any sort of damages. But you must have that need for the establishment of your business or company sector.
How Long After EIDL Advance To Get Loan?
|Type||Number of Days|
|Maximum Days||22 days|
|Minimum Days||21 days|
Small Bank Administration’s Economic Injury Disaster Loan program is helping small businesses or organizations by providing them with low-interest loans which pile up to 3Million. This helps the nonprofit organization and businesses by providing them much-needed economic as well as financial support. This will lend a helping hand to them. It is a result of the small businesses eventually overcoming the temporary losses they incurred from the revenue they are facing.
Some Facts say that in the Economic Injury Disaster Loan Program the interest rates vary for different organizations. It is like 3.75% for small business organizations but it is 2.75% for non-profit making organizations. This is because the small business organizations are liable to Emergency EIDL or Advance Economic Injury Disaster Loan.
But the non-profit-making is not liable for them. But as an initiative, the borrowing parties have the upper hand to apply for an Emergency EIDL or Advance Economic Injury Disaster Loan. Then the Small Bank Administration will grant these organizations with an advance on the loan of up to 10,000 dollars.
So these Emergency EIDL or Advance Economic Injury Disaster Loan takes 3 to 4days to get sanctioned by the bank from the date of the following request. It’s only for the ones who need it badly and is only sanctioned looking at their financial stability. And after all these formalities are done including the paperwork for its formulation the actual loan amount gets sanctioned after 21 to 22 working days. One needs to be patient during this period while preparing all the documents.
Why Does It Take So Long After EIDL Advance To Get Loan?
So before proceeding further into this topic, a thing should be made clear that the statements, the facts, and the figures which are being produced here are based upon thorough research and mere assumptions according to the Small Bank Administration and nothing else. So till now, we have been able to pull off the task of knowing how long it will take for the EIDL to grant a Loan after providing an emergency loan. It was difficult to calculate but still made it.
But then after all this, another question that pops up in our mind is that why will it take this long for the bank to sanction the actual loan apart from an Emergency EIDL. So it has its reason behind it, to look out for.
The SBA made an initiative to provide a hand of assistance for recovering from the injuries or the disaster faced by them. It also adds to deal with the temporary economic crisis. So helping them this initiative was taken.
But to add more to this help what they do is offered an Emergency EIDL. However, this is sanctioned a bit faster. But it takes 3 to 4 days to sanction it. But it doesn’t harm the process of getting the EIDL loan. And it will take 21 to 22 days to sanction it. This is because they need to examine whether they need this amount or if the emergency amount is enough to fulfill their needs. All the proper documentation required should be made ready before the sanctioning process.
So at last, you have to keep some points in your mind that these are the most valid reasons why it takes this amount of time to grant the Economic Injury Disaster Loan. But one more thing is whether you take or you don’t take an emergency EIDL or an Advance Economic Injury Disaster Loan, it doesn’t affect the timeline for the EIDL loan to get granted.
But apart from all these statements, a great thing is this initiative taken during this pandemic time. It will surely help and boost many small businesses and non-profit making organizations to incur their revenues from losses!.