The Covid EIDL loan provides financial assistance to small companies and charitable organizations that are facing a temporary loss of revenue. What is the loan modification process and timeline?
As of mid-October 2020, the U.S. Small Business Administration (SBA) has issued over 3 million Economic Injury Disaster Loans (EIDL), totaling more than 190 billion dollars.
Small businesses affected by the coronavirus pandemic may apply for an EIDL loan of up to $2 million from the federal government under the CARES Act Funding Relief until December 21, 2020.
See EIDL process stages and meaning:
- Approval Stage: The EIDL loan application is forwarded to the Senior Loan Officer, who makes the ultimate decision. Your EIDL loan application will be denied if the Senior Loan Officer does not approve it.
- When the ‘Processing’ stage becomes the ‘Approved’ stage: This is the point at which the loan portal’s status changes from “processing” to “approved.” You may also see “approved,” but the documents will not be available until you receive an email with the approval.
- Funding Stage: Treasury sends out an ACH payment. This is a fairly rapid transaction, and cash should arrive within 24-48 hours on business days.
- Payment Tracking: The disbursement may be tracked using your loan number and CAWEB to check whether and when the US Treasury sent the ACH.
- Deposited funds: This is when the funds has landed in your account.
“Your Loan Modification is being processed” Meaning
If you are getting “Your loan modification is being processed” keep calm.
The processing period for each loan varies. Delays arise when the SBA waits for tax transcripts from the IRS, which can take 6 to 8 weeks. Sometimes it takes a little longer.