Home » Who is Not Eligible For PPP loan?

Who is Not Eligible For PPP loan?

PPP Refers to Paycheck Payment Program

by Editorial Team

The Paycheck Payment Program (PPP) allows you to get low-interest private loans. It is designed to help small businesses so that they can keep their workers on payroll.

In this article, we will be discussing the general requirements to apply for PPP loan in USA and who is not eligible for PPP loan.

Requirements to apply for a PPP loan

The borrowers need to look into the programs deeply before getting a loan. Similarly, there are different requirements to apply for the PPP loan too. There are two rounds of applying for a PPP loan.

Thus, the requirements for both the rounds are different. If you’re looking forward to applying for a PPP loan, you will have to meet these requirements.


Let us dive into the discussion of who is eligible to apply for a PPP loan and who is not.

1. Eligibility

In order to be eligible for applying for a PPP loan, you need to meet the following requirements.

2. Operational Business

The loans are not provided for the businesses that are not operational, closed or not open yet. In case you want to get a PPP loan, your business must be open and operational.

3. Number of employees

PPP loan requires you to have a certain number of employees and not more than that. The number of employees should be 500 and not more.

4. Locations

You are allowed to have your business in more than one location but each location should have a maximum of 500 employees.

Who is not eligible for a PPP loan?

There are certain points that may make you ineligible for PPP loan. These activities that you must know are:

1. Closed Business

If a business is closed permanently, then the Paycheck Payment Program does not provide a loan for its reopening or any other purpose.

2. Prior Loss

If the business is in loss and defaulted even after taking loans from federal.

3. Passive business

The passive businesses that are not eligible for PPP loan include health care or nursing homes that do not provide healthcare anymore, residential homes that are not licensed, or properties engaged in re-sale.

4. Religion Promoting Businesses

The core purpose of some businesses is religion based. Such businesses which are involved in promoting religion are not allowed to get a PPP loan.

5. Employees are only housekeepers

If you only employee housekeepers in your business, there is a bright chance of rejection for PPP loan.

6. Affiliated Lender

You are allowed to take loans from lenders that you are no associated with. If you are an office person of the lender or any other close relative, you become non eligible for PPP loan.

7. Fraud Record

The owner who has 20% or more of the company, must not be involved in any fraud or other crimes. The record of the owners must be clean.

If you do not sit perfectly on their criteria, the lender has the right to call you ineligible for applying a PPP loan. Therefore, borrowers must go through the eligibility criteria before applying PPP loan.

In this blog we have tried to sum up the aspects related to eligibility to apply PPP loan. We hope this blog helped you understand the criteria. Do share your views with us in the comment box below.

Read Also:

You may also like

Bankaari Logo Header

Compare Loans, Mortgages, Credit Cards, Insurances, Stocks & get expert advice from our financial advisors.



Subscribe to our Newsletter for new blog posts, tips & new photos. Let's stay updated!

The content provided by Bankaari.com is based on indicative information ONLY. The integrity of the information is reviewed and validated at regular intervals using the information available from free sources (websites, product catalogs) provided by banks/service providers and their helpdesk however product information, service charges, rates & fees are subject to change on time to time basis. Bankaari.com takes no responsibility of any such changes or any consequences arising from the use of or reliance on the content presented in this website. Therefore it is highly recommended that you should also make direct enquiries to the product providers/banks before buying a product. We aim to serve you impartially.

Bankaari.com | Copyright 2023 ©. Developed by WordPress SEO Agency