Is SBA replacing the Square Loans?

[RadioMcG]

We haven't received another loan offer - which I find odd because we are 100% paid off on the last one and typically see an additional offer at 80% or so.  All numbers are significantly up as well. Has anyone else noticed no offer? Or am I just stuck in unknown algorithm for now?

[Regina_B · Accepted solution]

👋👋Hey @RadioMcG and @ecantiques5

Thank you both for your posts. Regina from the Square Loans Team here. Given the current economic challenges facing many small businesses, we’ve had to reduce our Square Loans loan offers to uphold our mission of responsible lending. To help our sellers through this time, we are working with sellers who need payment relief on existing Square Loans loans outstanding. 

Though we may not be able to extend a loan offer through Square Loans right now, teams across Square are unveiling new ways to support businesses’ need for cash flow, and our team is extremely focused on bringing the SBA’s Paycheck Protection Program to our sellers. We also have a dedicated team researching new resources and are updating this list weekly. Here’s the link: Square Loans COVID-19 Business Financing Resources Support Center article. 

For more information about PPP, please take a look at our FAQ. Thanks again and take good care. 

[RadioMcG · Accepted solution]

HERE IS A COPY AND PASTE from a response posted today in the Square Loans section. Passing on the info I read, if you haven't seen it!

To the Square Community,

As we relaunch business loans, we’d like to explain why loan offers were unfortunately paused at the beginning of COVID-19.

First and foremost, we should have been more open with you about pausing business loans, and why it was necessary. We understand the timing was tough for many. We don’t like disappointing, and we know we did. We want to be more open with you about our business, and the lending industry as a whole, so you might understand why loan offers were paused.

Like many businesses, we were unprepared for a full-industry shutdown at the onset of COVID. Pausing loans until we could update our product to better measure the impact of government shutdowns on small businesses, as well as on our own, was the responsible decision.

Our ability to offer access to loans relies on backing from financial partners. When the COVID crisis began to unfold, it became clear that lending in that moment could possibly be irresponsible—for us and our partners, but also for the businesses receiving loans. While it’s true pausing loans was a business decision, we also never want to put any business in a potentially risky financial position. Our mission to better serve small businesses during times like these has further pushed us to start our own bank, which will debut in early 2021. We’ll be the first ILC bank charter issued in 14 years—enabling us to build and run our own bank systems designed for businesses like yours.

While pausing loans was a difficult decision, we saw another way to assist more small businesses through this crisis: We quickly shifted our resources to help over 75,000 small businesses access Paycheck Protection Program (PPP) loans through the SBA. At the time, PPP offered a sustainable way to access funding during COVID.

As of now, the business market has stabilized to where we can responsibly offer loan access to some businesses. However, eligibility criteria has been tightened. If you previously qualified for an offer, that may no longer be the case. Please know we are reviewing all of these factors regularly, your offer status could change soon. If you do become eligible, we’ll send you an email, and notify you on your dashboard.

Like everyone, our goal is to work our way back to normal. But right now, our main focus is on responsibly providing the Square community with access to funding, and making sure we communicate with you—openly, candidly—along the way.

We can’t thank you enough for your patience. We’re glad to be back to support your business, and we’ll keep you updated as we move forward. Expect to hear more from us soon.

Be well,

Jackie Reses

Square Loans

[Scott513]

I have paid off my capital loan and still no offers.   I’m wondering if it has stopped with Covid.  I actually did way better during this time.  I paid it off in 1/2 the time I usually do and it was a higher loan.  If no offers roll through guess it’s time to move on.

[DDS]

I think this is wrong of square capital. If people are able to pay off the square loans then that means obviously they are doing well and their business was not affected like other businesses. My loan my third loan is paid up to 88% and I've had no offer at all either...we have 18 months to pay off car loans and I paid off all of my loan within 7 months I think that should stand for something and I think these other businesses if they're able to pay off their loans square capital should be offering them alone otherwise you could very well possibly lose that small business to one of your competitors!!and I know just by reading The message board I'm not the only one that feels this way. And another thing.  those people to get the PPP loan will have it forgiven... so what is the issue??

[LegacySS]

Sorry to burst everyone's bubble but this program is gone! I have gone from Frustrated to almost relieved at the same time!   I too always get offers at 75% paid off and this time i paid off $34,000 in only 4 months because like MANY OF YOU we are actually doing Great during this time and it allowed us to pay down the loan super fast!   We have now been 100% paid off for about 2 months now and still NO offers!  We have generated over $200,000 in revenue in the last 2 months and still no offers.   However what Square Capital did do for me is LOCK our account up for 2 days because one of our vendors switched his card on file and we had to do a REVERSE charge back and then a new charge to a new card.    (This simple transaction caused a LOCK DOWN and I had to give them access to our bank, send statements, send invoices, send credit card authorization forms, etc to be UNLOCKED).   No warning, no questions, just an IMMEDIATE LOCK DOWN!    Totally UNSATISFACTORY service for what is a common issue in sales from time to time.  The point is if they can communicate when it benefits them, they should be able to communicate to us when it can benefit or Hurt us!     Now that I'M 100% paid off i'm relieved not to have to pay 15-20% on a $10,000 sale!   There is other capital offers out there  if needed.  FUNDWORKS and NATIONAL CAPITAL do daily paybacks so no matter how much your revenue is for the month your payback might just be $100 a day for the term of the loan.   If anyone will get an offer it will definitely be us and when we are offered something i will be glad to post it so you all know!     Until then find something else guys and use square to just process your transactions.    ALL WE CAN DO!    Square will only communicate with you when they want to LOCK your account or want New Business!    SAD really but its how they do their customer service.   (CANNED RESPONSES OVER AND OVER AGAIN).   I think we would all understand a very honest answer during this tough time in America!   We are all in Sales and we know how customer service works and we all know the best customer service is to just be honest!     Customer Service 101 -  Try it Square so your customers arent confused or frustrated and they can plan ahead and stay in business!    Afterall if we all stay in business Square makes more money right?   LOL  Simple really!   

[bigpoppi]

@LegacySS - what kind of biz are you in?

[Wvcupcake]

I own a Gourmet Cupcake Bakery in WV

[LegacySS]

Protective gear!  legacy safety and security

[bigpoppi]

@LegacySS  - Ok I thought I found you.  Sent you a message about your gear on FB messenger

[murrietaPC]

I already paid off 9 square loans.. the last one I paid 6 months ahead of time and the last payment for that one was in March. So far this is my busiest year. I sell refurbished computers and with kids doing school from home and also people working from home, its been crazy. I use the square capital loans to buy inventory ( like if I find someone selling 50 computers at a great price, I can live without buying them, but if I can use square money to buy them and do a quick flip, I make great money, and the loan gets paid in weeks

[RadioMcG]

Here is a response I received today. Let's all hope we can see this happen soon! 

"Yes the program will be returning. I do not have a eta of when the loans through Square will be available. However I would suggest to stay posted onto the Dashboard.
If you don’t see an offer in your Square Dashboard, your business isn’t currently eligible to apply for a loan through Square Capital. However rest assured, Square sellers are reviewed for offer eligibility on a daily basis."

Shawn, 02:29 PM

[bigpoppi]

@RadioMcG - joke!

[TheSavvyDog]

<<If you don’t see an offer in your Square Dashboard, your business isn’t currently eligible to apply for a loan through Square Capital. However rest assured, Square sellers are reviewed for offer eligibility on a daily basis.">>

That is Square Speak for:  "no businesses are currently eligible, please stop asking"

In other words, Square giving a placating answer, because reading through the threads and realizing that they are dodging this 3 month long discussion, is going to cost them business.  Throw the consumer a bone (a little bit of hope) that maybe, just maybe, the Capital program is active, and maybe, just maybe, consumers won't move onto a different product for their processing.

Three things here: 

1) small business is what makes Square tick.  And small businesses are the ones that have suffered the most, by far, during this crisis. 

2) I'm sure that Square is in a panic that they are seeing a significantly reduced bottom line.  As long as that bottom line remains reduced, their venture capital backers aren't going to throw money into a fund that small business owners may default upon.  And let's face it....we're seeing a lot of mom and pop businesses close.  In my small town, in my niche business....we saw two long time, VERY well established businesses close their doors...both in the business since the late 80s! 

3) And don't think for a second that they aren't monitoring who has needed to take extra loans thru SBA to get through this (and how much!), versus those that were able to ride it out, without the extra loans.  They are trying to figure out if folks can pay both SBA *and* Square.  And they are watching to see how many accounts close or didn't produce income.

Yeah, the whole thing STINKS to high heaven.  And Square should have been transparent from the beginning.  And Square shouldn't be gaslighting on the current policy of no Capital loans.

Ethics....ya either got 'em or you don't!  Good luck to all through this COVID-19 mess!

[Builwyf]

I had a square loan that I was paying off and did.  During the time while I was paying off the Square Capital Loan  I recieved a ppp loan and now after paying off my Square loan I have yet to recieve any new Square Capital loan offers. I Meet all the requirements and have actually grown in Revenue during the Covid 19 shutdown. I was wondering if any body that had recieved a ppp loan was issued a Square Capital loan? 

[LegacySS]

NO ONE has been offered a Capital Loan!   

[Tattoosbyjustin]

There are four people in my place of business myself and three others that you square I'm the only one that got a PPP loan everyone else has got and taken the square capital on offer I'm the only one that hasn't my capital loan has been paid off for almost a year and nothing because my PPP loan but they do not tell you that so for you to say no one has got a square capital on offer is ridiculous because they have.

[TheSavvyDog]

It's not just PPP Loans....Square Capital is not offering any loans to ANYONE.  In good standing or otherwise.  Even people that have been with Square from the beginning are not being offered loans.  In fact, some folks had offers that were revoked.   

[DDS]

Of course square capital is not being honest! But I believe if you had to get an SBA loan that they're not going to do a capital loan also even if we paid it off 6 months early! We are in the same boat as many as you and unfortunately square capital is making out like big dogs off of us! So maybe we should make one day of no charges!

[Rhinolinings]

Are they still doing loans? Paid a $30,000 of a $32,000 loan off in 6 months and now I see nothing coming up and I nothing new coming. I have more opportunities in front of me, it’s frustrating that you cannot make solid plans because there maybe no offers coming through. I suppose I should look at my commercial bank for stable lending. 4 years and never late on a payment, always hyper paid the loans back. Super frustrating!

[Gunsmith12]

Has anyone received a Square Capital Loan during the Covid pandemic?  Are they still offering them? 

[jjgard]

The consensus from what I've seen here on the community is that they are not currently offering them.

[Onpoint307]

I usually always get a new offer from Square around 85%-90% completion of my current capital loan.  This time I'm not.  I have a relatively fast payoff, well under the 18 months, and I didnt even opt for deferments during the pandemic.  Here I am at around 97% completion and I havent had an offer.  I guess I am curious if the loans have been delayed during the current crisis.

[JP9]

I called them last week and they said that they are not offering Capital loans at all until after June 30th... well, it's after June 30th and I still haven't seen anything.