Do Approved Paycheck Protection Program (PPP) Loans Need to Fund in Ten days?
Under interim rules published by the U. S. Small Business Administration, Lenders have 10 calendar days to send funds to PPP loan applicants whose applications have been approved. An application is considered “approved” for these purposes when the applicant is assigned a loan number by the U.S. Small Business Administration. This number is sometimes also referred to as a “PLP” number. The “PLP” stands for “Preferred Lending Program.” Each borrower receives a unique PLP number from the U.S. Small Business Administration. Your lender should notify you once you are assigned a PLP number.
Under the interim rules, if you received your PLP number on or before April 28, 2020, your lender has 10 calendar days from April 28, 2020 to fund your loan. So, if you received your PLP number on April 20, 2020, your lender has until May 8, 2020 to fund your loan.
If you received your PLP number anytime after April 28, 2020, your lender has 10 calendar days from the date that you received your PLP number to fund your loan. So, if you receive your PLP number on May 1, 2020, your lender has until May 11 to fund your loan.
Note that If the tenth calendar day is a Saturday, Sunday, or legal holiday, the period continues to run until the end of the next business day.
If you have not received a PLP number, you should make sure that all of your application materials, including all required documentation, has been submitted and you should check with your lender on the status of your application.
PPP loan applicants who have been approved and have received a PLP number, but have not provided the required loan documentation, will not receive a PPP loan. Approved loan applications which have not included all required documentation within 20 calendar days of approval, are not eligible for funding and will be cancelled.
Can a Borrower Make Multiple Draws From a PPP Loan To Extend the Eight-Week Covered Period?
No. The lender must make a one-time, full disbursement of the PPP loan within ten calendar days of approval. This is important because the eight week period of time for which certain expenses are eligible to be forgiven begins on the date the loan is received.
The U.S. Small Business Administration may provide further guidance, if needed, through notices that will be posted on the U.S. Small Business Administration’s website at www.sba.gov. This information is accurate as of April 29, 2020. Questions on the Paycheck Protection Program may be directed to the Lender Relations Specialist in the local SBA Field Office. The local SBA Field Office may be found at https://www.sba.gov/tools/localassistance/districtoffices.
This information was taken from: https://home.treasury.gov/system/files/136/Interim-Final-Rule-on-Disbursements.pdf