How Long After EIDL Approving for Funding (And Why)?

Exact Answer :  5 – 21days

EIDL stands for Economic Injury Disaster Loan. EIDL majorly helps small businesses and non-profit organizations. The SBA’s EIDL program gives financial assistance to the developing small businesses to install themselves. It is a low interest federal loan that is used for to pay fixed debts, payroll, bills, rents, utilities and accounts payable.This program is a part of the Coronavirus Aid Relief and Economic Security Act that provides $10 billion for $10,000 grants to these epidemic-affected small businesses.

It takes a minimum of 5 -10days to receive EIDL funds after approval. Sometimes the application may take 21 days to proceed further. It wholly depends upon the application procedure.

How Long EIDL takes to Approve for the Funding?

Follow these steps to receive EIDL Funds quickly without declining of the application.

1.Gather all the important information including your business details, revenues( like up to date balance sheet, profit and loss report).

2.Apply for the EIDL Funding Loan application online in the portal. The applying procedure may take some time so fill it patiently and carefully.

3.Wait for the SBA officers to review your application.

4.Carefully review your borrow amount and sign the loan agreement.

5.That’s it you will soon get your funds to be deposited in your bank account.

As instructed in the above steps. To apply for the EIDL Funds program, you have to apply online. The online form will mainly ask questions regarding your business enterprises. Name, Address, Employer Identification Number. The loss you suffered, the cost of goods, your annual revenue of the business. Strength of your employees and many more such things. Explain briefly and specifically the loss of your business due to pandemic. To avoid any sort of delay in the processing of the loan application, kindly fill details correctly.

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OverviewEIDLEIDL Advance
LenderSBASBA
Maximum Loan Amount$2MMAdvance of upto $10,000
ForgivableNoYes
No Credit Else-whereWaivedWaived
AffiliationApplicableWaived
Personal GuaranteeNo Personal Guarantee for loan amount upto $200,000N/A
TermUpto 30 yearsN/A

Why Does it Take That Long After EIDL Approving for Funding?

The EIDL Loan has a 3.75% interest rate for small businesses and a 2.75% interest rate for nonprofits. The time takes for the approval of EIDL funds is wholly depends upon you and your accomplishment of the documents. If your business is qualified for an EIDL loan then you will receive an email with all the details regarding how much money you can borrow. Make sure before applying for the application of EIDL, you have all the necessary requirements with you. Once your agreement is signed, the loan application will start proceeding. The loan Officer will review your application and decide whether to give approval or decline the loan funding.

After checking all the details submitted by you, the funds will be deposited into your business bank account within 5 to 10 days.It is not necessary that you will receive the deposit within five days. Sometimes the application may be processed within 21 days. It varies from application volume. If you are fit for the EIDL loan then you will get it within one month of time span. If not then check the EIDL application loan status by connecting with the SBA Disaster Assistance Customer Service Center. Email details – disastercustomerservice@sba.gov

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Small businesses are required to have the following documents for the EIDL application.

1.Tax Information Authorization (IRS Form 4506T) for the applicants, affiliates, and principals.
2.Copies of the most latest Federal Income Tax Return.
3.Schedule of Liabilities (SBA Form 2202).
4.Personal Financial Statement (SBA Form 413).
5.Profit and Loss Statements.
6.Monthly sales figures of the business (SBA Form 1368)
7.You may have to submit SBA Form 5C if you are a sole proprietor.

Conclusion

To apply for EIDL Loan and get funding easily by following all the steps. If you are qualified for the loan then receive the funds quickly after approval. It is more challenging for the small business to recover from the loss of the pandemic. This EIDL program will support you to have financial assistance.

References

  1. https://www.sciencedirect.com/science/article/abs/pii/S0148619520304136
  2. https://www.jstor.org/stable/27015591
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