Getting a startup loan with bad credit is never a fun task. Generally, banks will not even consider you for a loan if you have a credit score of less than 640. However, this should not be a cause of despair, as banks are typically not the best place to go to to get bad credit startup business loans. There are other options available.
The first option you might want to consider would be a smaller bank or a credit union. In these environments, the representative you speak to will usually have a position that is higher up in the decision making process, and will be less burdened by the strict rules and regulations of Bank of America and Wachovia. This will give you a much better opportunity to pitch your idea. The structures of these businesses are also such that they are likely to be beneficial to the customer. Small banks are generally more competitive, because your account means much more to them, and credit unions, being non-profit organizations, do not have profit margins. While they do not have the same levels of convenient account portability and readily available ATM's, they are much more friendly to people with bad credit. Startup business loans, bad credit lines of credit, fall much more commonly within their scope of practice.
Another option you may want to consider is P2P lending. This is a more popular form of lending that has come about recently due to the availability of online markets. With sites like virginmoney.com, it is very easy for borrowers in need of startup business loans and low profile lenders to get together and form a relationship, with the middle man cut out almost entirely.
While large banks have certain very convenient advantages, like being excellent lending options for many people with with good credit and offering account portability and ATM options, the drawback is that your customer relationship with them is very limited, and because faceless account executives handle everything, you are generally not going to be anything but an account number to them, and they are certainly not the best places to look for bad credit startup business loans.