Will the PPP $$ Run Out Before My Application Gets Approved?

There is a lot of angst in the marketplace related to PPP loan application funding.

I hope this info helps keep what your bank tells you in context. 

I have talked to officers from several banks - large community banks to national banks.

Here is the general process in my own words (since each bank talks about the process in their own terms) 

·      The application is collected by the bank with supporting documentation- some larger banks are totally online automated including e-sig; some have a process that uses the SBA application and a checklist of items to complete, sign and send in.

·      The bank goes through two or more levels of internal audit (vs full scale 'underwriting') making sure the application is properly done, amounts are calculated correctly and supporting documentation is complete.

·      Where needed, the bank requests info or documentation from the applicant.

·      Most banks have their loan or banking officers readily available to customers for questions, updates, etc. One large institution seems to rely on prescript-ed emails and online portal for customer communication (which I do not think is very customer oriented).

·      When the bank is comfortable with the application they have an SBA process and form they use to transmit the application to the SBA.

·      The SBA does their own internal audit and can approve, say 'no' or say 'we need more info'.

o  They notify the bank and the bank responds as needed- if approved the bank funds the loan and puts it into the customer account.

o  If turned down- I assume the bank probably re audits –

o  If the SBA needs more info- I assume they communicate this need to their customer and updates the loan package for re-submittal to the SBA.

o  They probably also update their internal audit process in either case.

I am told several banks have all begun funding, but again, I have no direct contact for whom that is the case. Several direct contacts have been told their apps have been sent to the SBA.

But, right now, they are still waiting and saying, “Show me the money!”