I spoke to a borrower yesterday who needs $350K for his business. His dilemma is to wait for the SBA to hopefully approve his EIDL extension, or go and apply for a conventional SBA loan.
As previously discussed, several weeks ago, the SBA announced that the agency was increasing the maximum EIDL loan to $500K from $150K and asked borrowers to email them to get into the queue for the loans. While I know some borrowers who have subsequently been asked for additional information after the first email, I don’t know anybody who has gotten further than the second step. (If a reader has – please let me know).
I suspect that the overstretched SBA is sorting out how to prioritize and process these applications. Out of fairness to them, it’s a lot of work – and I don’t think they have finalized the rules.
So what should the borrower who needs the money do? My advice was that as in his case, he was likely eligible for a conventional SBA loan, it was probably wise to start that process today. While the terms of traditional SBA loans aren’t as good as the EIDL loans, he might be waiting for a long time and be in a dark hole by just waiting. And if the EIDL comes in, he can always prepay the conventional SBA loan.
Let me be clear: not every borrower who is waiting for an EIDL extension would have a chance to get conventional SBA funding today. If you're in this bucket – unfortunately, your only choice is to play the waiting game.
Ami- I have had to verify documents on the portal and sign a loan modification agreement.
Now it says it is being processed. No answer beyond that. But note this did occur 5 days ago.
I had the same experience- after an email, I logged on, clicked the “request more funds” and then slid the slider bar to the desired amount. Now it has that amount with the words “amount confirmed”, and states it is being processed. I’m left wondering if it’s approved and the paperwork is processing, or if they’re deciding whether to loan us the ”amount confirmed” that we chose. Any insight?
May I ask what was the end result of this process? Did you receive the full amount requested? What was the timeline?
I did that as well 2 weeks ago. the website still says "Your loan modification is being processed".
I emailed them on Monday and haven't heard from them yet.
Add me the list of people that completed all the steps and am now waiting.
When I look back at our original loan cycle time it took about 10 weeks. I think it’s safe to say we got our application in during the first wave. I’m guessing we should expect a similar cycle time, hopefully not longer.