I think to be "approved for submission" just meant they met basic eligibility criteria. The LOI (which is usually a non-binding agreement -- a formalization of working together) was the next step. I would assume once the application is actually submitted, we might see that longer waiting period of 90-181 days for actual approval and funding. All of that assumes less obstructionism in the Senate. The Senate Majority has been very resistant to approving any of the Obama appointments, so we may have a fight on our hands to get a quorum before November's elections.

I'd personally suggest scaling the application back to $10M and getting that quickly funded.