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PPP Loans & Credit Scores: Is A Credit Check Required To Get A PPP Loan? What To Expect When You Apply

    Jason Vissers
  • 13 comments
  • Updated on:
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Jason Vissers

Jason Vissers

Expert Analyst & Reviewer at Merchant Maverick
Jason Vissers has been researching, analyzing, and writing about small business software and finance since 2015. His financial expertise has been cited in numerous publications, including The Ladders. Jason graduated with a Political Science degree from San Diego State University in 2001.
Jason Vissers
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13 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Debbie McLaughlin

    Got denied for credit reasons.. yes I’ve missed or been late on payments but only since this pandemic started. So not right or fair that those who are really struggling get Penalized

      Melissa Hall

      I agree. My father went through the exact same thing. This was supposed to HELP those struggling BECAUSE of the pandemic. They KNOW people’s scores are going to be in the toilet right now. We need the help based on other criteria..like time in business and if taxes are paid..etc. This was depressing to know u had to have a very good score to qualify. It hurt more than helped. 🙁

        MADHUM

        They declined my EIDL APP targeted advance loan for no reason :::Not Eligible: The applicant business did not substantiate the required reduction in gross receipts to
        establish an economic loss greater than 30 percent.
        my income in 2019 was 63k$ and 2020 was 12k$ ,I never late in credit card payment for the last 18 years ,zero late fee .,I DON’T UNDERSTAND ,,BAD CREDIT MEANS YOUR ARE FINANCIALY ACTIVE ,SOME PEOPLE DON’T HAVE ANY BUSINESS AND THEY GOT THE MONEY . I Work to death to pay off my bills ,lease ,rent insurance and other licensing fees and work 16 hours a day since 2006 ,I lost lot of money in my business , one car cost 52000$ a year to operate , ,,,sba is ran by criminals ..

          Beverly

          You are so right!! Pro football player and his friends scooped almost 24 million. These scammer crooks getting the money, while real business like ours fight for every dime!!

            Keith L Glees

            Was denied due to bad credit. Seems strange as my 3 credit scores are 712..749.. and 761. Any suggestions as to how to reapply? Rejection email said decision was made by SBA …not lender

              Jessica Dinsmore

              Hi Keith,

              That does seem odd, but if there were any derogatory remarks, or recently missed or late payments, that could impact the decision. My understanding is that they are looking for a reasonably good overall payment history-not so much a particular score. And with those scores, it would seem that you are in better shape than most, or at least many. I’d reach out to the SBA to see if you can get clarification on the decision, and then reapply ASAP. You can apply with multiple lenders, just be sure to withdraw any outstanding applications once you are approved. I hope that was helpful. Good luck!

                Melissa Yeater

                I was verified by Square in Feb 2021 (they handle my payroll & my POS) I be was in SBA review since 2/17 & got email rejecting my app because bankruptcy. We filed Ch13 in 2018 and have not missed any payments since. I was approved & 100% forgiven for 1st PPP. I thought PPP was not based on credit since most if not all would be forgiven anyway? This has really dampened my BB spirits as I have called SBA & Square back and forth ~6x each because one kept telling me it’s not in their court. One SBA agent even told me to Google latest legislation that would include bankruptcy as why I got rejected! As most of us small business owners we rely on govt help to prolong our business livelihood. SBA also told me there’s no way to be reconsidered once denied. If anyone has any recommendations on what I can do to get assistance it would be great appreciated. Thank you

                  Jessica Dinsmore

                  Hi Melissa,
                  The only reference we can find that somewhat resembles your situation is a recent form by the SBA that indicates that applicants for 2nd draw PPP loans who are “presently involved in any bankruptcy” are ineligible, but that doesn’t seem to speak to situations where the applicant settled a bankruptcy years ago (and indeed got approved for a 1st draw PPP loan). You could try applying again through a different financial institution, but unfortunately, this might just be the way the SBA is interpreting the rules for 2nd draw PPP loans right now, illogical as it may be. We wish you all the best!

                    Christina Jones

                    I applied in March 2021 through Square with mine as I did not know about Square doing this since I only started using them for my business Oct 2019. I just got my email this morning I was approved and was surprised because my husband was in an accident and GAP has yet to pay off my loan which has my credit in “delinquency” and I get turned down for any credit checks! I was checking on my Square Loan I am currently paying on and the PPP approval was there. I figured being an SBA loan I would get rejected. Your situation is odd cause why would they grant your first loan/forgive then deny the 2nd? Seems as if your bankruptcy was the issue it should’ve been that way. Hope you get it figured out!!!

                      Phyllis scardino

                      Smartbiz denied me due to credit history. That’s awful! Of course my credit is not good, we have been in the middle of a pandemic, shame on you!

                        Griffith HUNTER

                        Did they tell you that your denied? I have been waiting for them for a long time with no answer at all..

                          Lisa Velarde

                          On August 29th 2020 I unfortunately received a denial letter for the SBA DISASTER LOAN because of Unsatisfactory credit history.

                            Monique Webster

                            I was told the same thing. I was thinking about disputing the findings due to my business credit being separate from my personal credit. I looked up the requirements and unfortunately personal credit is a factor.

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