Yes, you can get a PPP loan even if you have bad credit. When it comes to the standardized protocol, there is no credit score requirement for a PPP loan. The official demand for credit score was canceled for Paycheck Protection Program loans, and as such, your credit history will not be considered when the PPP lender evaluates your request.

SBA loans, of which PPP loans are a part of, offer additional financial relief funds that may be utilized to pay a variety of operational costs such as wage bills, mortgage interest, leases, and more.

Every SBA-related loan solutions come with interest, nevertheless, Paycheck Protection Program loan can be forgiven by up to 100% as long as the borrowers maintain their workers for eight weeks, and leverage at least 75% of the loan funds to take care of staff payroll.

Weekly pay, salaries, commissions, tips, sick leave, and other payroll-related expenditures are also included in these expenses.

Requirements to Qualify for PPP Loans

1. Conditions for Your First PPP loan

If any of the points raised relate to your company, you can apply for your first PPP loan.

  • Your company was in business prior to February 15, 2020
  • Your company remains open and continues operating
  • You have a maximum of 500 employees
  • For a business with more than one location, you have no more than 500 employees per location.
  1. Conditions to Qualify for a Second PPP Loan

If any of the points raised relate to your company, you can apply for a second PPP loan.

  • You have exhausted your first PPP loan
  • Your company was in operation prior to February 15, 2020
  • Your company remains open and continues operating
  • You have a maximum of 300 staff
  • If your company has different locations, each location should have no more than 300 workers.
  • Demonstrating a 25% or greater revenue reduction

A greater reduction of 25% can be demonstrated in one of two different ways:

  • In 2020, compare your yearly gross revenue on your tax return to 2019.
  • When you compare your gross revenue in 2020 to your income in the same quarter of 2019, you will see a difference.

Things That Disqualify Businesses From Getting PPP Loans

You are not qualified for a PPP loan when any of the points raised apply to your company:

  1. You Have previously reneged on an SBA Loan

You should know that, if the business, its owner, or any company owned or operated by any of them, secured a loan from the SBA or any Federal agency, and reneged within the period of 7 years, the request will be denied.

  1. Any Federal Agency has suspended or excluded you from partaking in this transaction

If the business or its owner is suspended, disqualified, recommended for disqualification, declared unsuitable, or excluded from partaking in this transaction by any Federal department or agency, the application will be denied.

  1. If you have been indicted on criminal charges, incarcerated, on probation, or even on parole

If the business or any person that owns 20% or more of the Applicant’s equity is under investigation, is undergoing court appearance, or undergoing other formal felony proceedings, if currently in prison, on probation, or on parole, the application will be denied.

  1. If you have a felony conviction on your record within the last 5 years

If a business owner or an applicant has been found guilty, admitted guilt, been put on preliminary hearing diversion, or on any type of probationary or parole supervision (such as probation before judgment) in the last 5 years, the request will not be authorized.


A bad credit score can be frustrating for a small company owner during a time of economic instability when the demand for loans becomes critical. This shouldn’t discourage you from applying for a loan or financial support. The US Federal Government and Treasury are constantly working to ensure the availability of capital to business owners with bad credit.