SBA EIDL Funding Timeline: What To Expect During Application, Approval, & Processing

Applications for SBA COVD-19 Economic Injury Disaster Loans (EIDL) are closed, but many business owners may still be wondering what happens after their SBA disaster loan is approved.

We look at the SBA EIDL’s current deferment policy as well as the program’s overall current status. Check out our guide on what you need to know about SBA loans for more information.

How Long Is The EIDL Funding Timeline?

Many anxious business owners need to know how long does getting an EIDL loan take, so let’s start there. After applying for an EIDL, most applicants will receive a funding decision within 21 days. If approved, disbursements are typically made within a week. However, be aware that the EIDL approval timeline can vary based on how many applications the SBA is processing.

One beneficial change to the program is that the deferment window has been raised to 30 months. No payments are due within that time, although the loans will accrue interest over that period.

Need additional funding? Check if you qualify for the employee retention credit and easily file for your tax refund with one of these top ERC companies.

EIDL Funding Timeline: From Application To Account Deposit

How long does it take for an SBA disaster loan to be approved? Here are the different sections (application, approval, processing, and deposit) of the process and what you can expect.

EIDL Application

As of May 16, 2022, the SBA’s COVID-19 EIDL portal is closed. The SBA is not accepting new applications and is no longer processing requests for loan increases or appeals.

What Happens After Your SBA Economic Injury Disaster Loan Is Approved?

After your SBA loan is approved, you may experience an extended window of processing time, usually somewhere around 21 days. Given the volume of applications, you may experience a longer delay.

Unfortunately, there’s not a whole lot you can do here other than check on the status of your EIDL application.

Processing & Account Deposit

The SBA language states that funds should appear within five days after approval. Many businesses report experiencing longer waits, however.

How Long Does It Take To Receive EIDL Funds After Approval?

Wait times for EIDL funds vary greatly, but if the process is going smoothly, it should take around 26 days to receive your money.

How Long Will It Take To Get The Targeted EIDL Grant?

In 2020, it was possible to get a portion of your EIDL loan as an emergency advance grant. That’s no longer the case. Instead, the SBA is rolling out a targeted EIDL grant aimed at businesses in low-income areas that have suffered a revenue loss due to COVID. In short, you may qualify for a targeted EIDL grant if:

• You previously applied for an EIDL Grant but didn’t receive the full $10,000.
• Your business is located in a low-income community.
• You can demonstrate a 30% loss of income due to the COVID pandemic.

This will rule out a large number of small businesses that qualify for an EIDL loan.

So, for those who do qualify, how long will it take to get a targeted EIDL grant? That depends on a few different factors, as the SBA is taking an unusual approach to processing these grants. As of right now, you can’t actually apply for Targeted EIDL grants at all.

So what is happening? On February 1, 2021, the SBA started sending out email invitations to businesses that received EIDL Advances (the previous iteration) in amounts less than $10,000. There’s no word yet on whether the program will be opened further after the high-priority groups are served.

If you do receive an email invitation from the SBA, the timeline to fulfillment is similar to that of the EIDL loans. The SBA estimates that it will take around 21 days to process your case.

Disaster Loan Funding Timeline For Your Business

The COVID-19 pandemic has been an unprecedented economic disaster affecting many industries, small businesses, and workers. EIDL loans, along with the previous PPP loan program, have been the biggest lifelines around for many small businesses. No one wants to hear they have to wait for a life preserver when they’re drowning. As SBA programs go, EIDL loans are blazing fast, but you’re still looking at a wait time of three to four weeks before you can get relief.

Unfortunately, the only part of the process you really have any control over is the application, which you can accelerate by having documents and information handy when you’re filling it out. Still, that only accounts for hours, not days.

Did you miss the EIDL program application window? Check out your other lending options with our list of the best small business loans.

How has your experience been with the EIDL process? Let us know in the comments.