Immediately your loan is authorized, your lender will start vetting it before funds are deposited into your account. According to the SBA, “a loan is deemed sanctioned when it is designated a loan number by the SBA.” The SBA goes on to say that the lender should allocate funds within ten calendar days of loan approval.

The COVID-19 global epidemic struck quickly and tough, leaving business owners in shock. Companies had to transition fast enough to keep their doors open and their workers on staff. The Paycheck Protection Program (PPP) of the Small Business Administration has assisted a significant number of companies in the United States to remain solvent throughout these trying situations.

The time required to approve your PPP loan application differs based on the lending institution. The SBA mandates lending institutions to allocate cash within 10 calendar days of approval.

Once the SBA allocates you a loan number, your loan is deemed acceptable. From the moment you complete your application to the moment the lending institution allocates funds, the average PPP loan financing time-frame is about two weeks.

Things to Consider Doing Once SBA Approves your PPP Loan

Immediately you’ve been okayed for a PPP loan, take the following steps to ensure that your forgiveness period goes off without a hitch.

  1. Create a new bank account

To have your PPP loan forgiven, you must show that you invested at least 60% of the cash on wage bill and the leftover 40% on utility services and rent/lease/mortgage interest payments.

Keeping your PPP fund in a totally separate business bank account makes it easier to monitor. If you accept cash, credit cards, PayPal, or other payment options, you’ll need to have a suitable bookkeeping and record-keeping system in place.

  1. Determine which eligible expenses will be covered by the PPP Loan

Ascertain that your company will use the PPP funds correctly before requesting forgiveness. Several companies have significant rent or mortgage payments and will use over 25% of the PPP loan for rent or mortgage. If you haven’t already created cash flow projections to better comprehend your personal financial status and how the PPP loan might (or might not) help, now would be the time to do that.

  1. Make contact with your employees

With your extra revenue in place, you can now reach out to the workers you must have laid off or placed on leave without pay.

Re-hiring your workers will not only furnish them with a steady income, but it may also qualify you for loan forgiveness. Note to check to see if your workers are still receiving unemployment benefits as the PPP does not combine with unemployment compensation.

  1. Begin keeping books and records

To have your loan forgiven, you should not only invest the PPP funds wisely, but also demonstrate these expenditures to your lending institution.

To accomplish this, you must start monitoring and classifying all expenses. A simple bank and credit card statement will not suffice for your lending institution. A structured documentation showing your expenditures will speed up your review and decrease your chances of rejection. Keeping records entails noting:

  • The amount of money you expended
  • What you used it for
  • The date
  • The objective

You’ll also have to maintain records of the payment receipt/invoice/official record.

  1. Request forgiveness

You can begin investing your funds immediately your workers are back on payroll and you’ve got a record keeping structure in place. Because once the time comes, you should file a request to your lending institution for forgiveness.

  1. Fill out your tax forms

If you decided to apply for the PPP with duly filled tax forms, send them to the IRS. The earlier you submit your return, the earlier you’ll receive your refund (if one is due). Note that the tax filing deadline has been pushed back to July 15.


It is essential to act quickly whenever it gets to PPP loans. Entrepreneurs also should apply for loans well before funds run out. However, there is another timeline over which cash-strapped company owners have no influence: when loan money will be allocated.

The time it takes for your PPP loan application to be finalized and approved varies depending on the lending institution. The SBA requires lending institutions to make cash available within 10 calendar days of approval.