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

[vitamingal]

“You will be notified When you become eligible. Please check your dashboard”

BS

good luck my friend 

everyone here Is twiddling their fingers silly. 

[Erjm62009]

I’m wondering this as well. Normally I always get a new loan offer before mine is paid off and it’s complete and nothing. Like every other loan it has been paid back in 3 or less months. I’ve tried asking them and I’m just told I don’t qualify. 

[ErinAkey]

@JP9 Same here.  We will definitely be looking to change processors if Capital loans are not extended again right away.  We never fell short paying during COVID and are early as always.  This is very distressing considering the fees they make through our volume.  

[JP9]

Hi Regina,

I reached out to you last week but haven’t heard back. If you haven’t done away with these completely, can you please look at my account and consider me for a new capital loan? A response would be a very human thing to do.

thank you 

[Fabanich]

I am just going to point out that everyone here is in great standing and are completely honest about their situation and they are asking for a little help and the answer given is bs at best. 

You do away with a program that so many people count on and don't even tell them.

I think you'll find that many of your customers will be looking elsewhere for ccrd processing and then you'll be with out a business. 

It is a hard time right now and you can SEE and PROVE which business are making it work and bringing in money and could benefit by a little help....

"Good business since and smart lending"....

It's going to be good business sense to find another card processing company and quick....this one hangs you out as soon and they feel you're to big a burden.  

Not cool.

[Spector]

Ya.. same for us. We've done a good biz as of late, this pause and lack of communication from Square made us realize that the loans were convenient but kind of expensive.. and during good times, a bit of a cash grab from them, can't blame them for taking the money when things were good and backing away when times are bad... BUT, my regular brick and mortar bank has been there every step of the way and we talked to them about their merchant bank.

I liked how simple Square was and it was a thing ahead of it's time but there are in fact a lot of other options now.. they know it too I'd guess. 

These options are good for folks with less than standard books/credit, meaning kind of easy and quick. I'd say thanks to Square for what they were, but they too may be victims of our ever changing biz landscape.

[JP9]

I agree with you wholeheartedly. The worst part is that they continue to lie about it. When I called, they said that they had pulled back the loans substantially but are still giving them out and that when I’m eligible, I’ll be notified. But this is not true! They aren’t giving out loans at all.  The least they could have done was notify us that the program was suspended so that we wouldn’t have false hope.  Very disappointing. 

[oneggorin]

IM SURE THAT THE RISK MANAGEMENT TEAM AT SQUARE FELT THAT WITH THE CORNA THING GOING ON THEY DIDN'T WANT TO TAKE ANY RISK, THAT BEING SAID THEY GLADLY TOOK NO RISK IN GIVING IT OUT WHEN IT WAS TO THERE ADVANTAGE.

NOW THEY GAVE NO WARNING OR DID THEY EVEN BE HONEST ABOUT IT AT ALL. THEY SHOULD HAVE BEEN BECAUSE THEY ARE GUARANTEED THAT THEY WILL BE PAID BY OUR SALES WONT THEY SO THEY WERE REALLY TAKING NO RISK TO BEGIN WITH NOW WERE THEY!

[SBuffalo]

Regina. Thanks for the info. The issue is that square doesn’t appear to be acting responsible. It appears instead that Square Capital is retreating from making any decisions that are obviously good ones. My business alone has continued to grow through this economic uncertainty. I have paid off all four previous loans earlier than required and have never been behind on payments. I also haven’t had one charge back or even a refund in the four years I’ve used square. I feel abandoned by the company that said they were my partner. 

Im currently looking for other POS options as a result of the distrust that exist due to nothing more than a lack of courage on Square Capital’s part. 

[RadioMcG]

Still nothing 🤷‍♀️ What a joke

[DJSQUARE]

Hey RadioMcG

I can speak for what I have done thanks to the SQUARE Capital loans to SQUARE business users. I like you found it odd, but with the SBA them loand are for only business that have workers, b ut what happens when you don't. Well, that is normally where SQUARE came in till all this suff come to pass. I can share with you I personall am on my 6th loan and rocking, when SBA would not help me that God Square care to offer me another loan, I would have lost everthing, had I not been able to get it for stock. You can check daily on your dash board and when your account can get one you will see it there. Good Luck & do stay safe!

[Suzy6469]

After reading through this thread I am disheartened. I pay my loans back early and even during the shut down managed to make sure my minimum payment. The PPP loan I got barely cover my expenses and we had to use our savings to survive until I opened back up. I was hoping for a loan to get us through the winter months but guess you’re just going to wait and see what businesses survive. 

thanks   

[daviruchu213]

Any update on this? Other merchants still provide working capital, such as Shopify, stripe, etc. 

[Tritter82]

I just received a capital loan this past weekend. I didn't receive an email and only found it after going into the square capital area. I was approximately 80-81% paid off on my current loan. Hope this helps.

[Suziesuchi]

Thank you. After paying off my loan early with no COVID help; my clients have decided to pay me in other ways that cost me less in fees or no fees like Zelle, etc. So since I no longer have any obligations to your company; I have been using your services less. Thank you again. 

[JamesC]

Hi @Suziesuchi 

Thank you for reaching out! We certainly understand COVID has created a strain on businesses. 

It’s important to everyone that lending through Square Banking is done responsibly. We know your business is important and we don’t take that lightly. We want you to be successful and we support your future growth.

To help ensure you get an offer that’s just right for your business, Square Banking reviews accounts on an ongoing basis. There is no specific information we can share at this time because eligibility is based on a unique formula, but keep in mind that we evaluate accounts as a whole. The formula balances different factors of your business that may positively and negatively affect your business’s eligibility for an offer.

Please know that Square Banking is committed to helping your business succeed, but we understand that you may need to seek financing outside of Square Banking for immediate needs. If you are considering other options for a business loan, please review our 4 Things to Consider When Evaluating a Loan Offer in our Town Square Blog.

We will continue to monitor your account and notify you if your business becomes eligible for a Square Loan offer.

I hope this information was helpful! If you have any questions about Square Loans please contact the Square Loans Team directly.

[Mbuntins]

I am thinking I may leave square ... thanks for the info   I paid the fees cus I liked getting the loans ... I can find a cheaper credit card processing company ... I already paid 15 k in fees this year ... I can keep all that to my self and don't need to take credit cards ... in my type of business I did it cus the loans helped ...   I will get away from credit cards now .. expessialy they rated the fee last year ... also capital one has a higher interest rate in their savings account .... so long 

[Leeann4]

I’m taking five loans out from them I am 74% done with this loan and they will not do another loan I’ve asked after day trying to get through this pandemic but nothing

[murrietaPC]

One of the square employees that admin tis forum confirmed that they are not doing any loans at the moment

[jaechandler68]

Can you copy and paste their reply?

[ecantiques5]

@jaechandler68 

Please see the yellow high lighted area. I can not put into words how disappointing their handling of the covid experience has been. Never would have expected such unprecedented seller abandonment.

They offerred video uploads of various  sellers.

They reduced some monthly subscription charges

and in my opinion profoundly botched PPP .