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

[BrandyBoozer]

I have had many loans through Square and I have currently paid down 81% of my loan and never had to be paid this much to receive another offer...Are you still giving loans through the COVID-19 pandemic? 

[Kassi_]

Hey there, @BrandyBoozer - 

Right now, we’re evaluating all options to support sellers, but have nothing new to announce at this time.

[Katiegironda]

It is very disappointing that square has chosen not to be transparent with their customers during this time. My business has been quite busy since the pandemic and square even cut me off from any offers. After I’ve had 7 or 8. I’m not in dire need but I am frustrated for those that are and the unwillingness to be transparent. Just say “we aren’t offering new loans right now because of the pandemic.” Simple. Instead of making your customers hopeful and left waiting in their most desperate time. 

[Teddykapka]

I agree we have always been on time and we got a loan offer less than 20 days ago and now it’s gone,that’s not helping people at all!

[jaechandler68]

@BrandyBoozer @Teddykapka @Katiegironda @Kassi_ 

Very frustrating to not get the straight answer from Square. 

[ecantiques5]

@RadioMcG 

To my knowledge there has not been one Square Seller to post on any thread recently that they received a Square Capital Loan as they have in the past. Not ONE. Regardless if Seller in good standing & algorithm eligible. In fact sellers that had loan offers showing on their dashboards had their offers to disappear.

I would love to have the reassurance of having one seller to post that they received a sqaure capital offer on the normal algorithm eligibility. Anyone???

[heatherbrew82]

When will square start square capital programs again? PPP loan hasn't helped my business much at all it was such a small amount....

[vitamingal]

Agree, PPP was barely enough to cover for the damage that was done.  The is the WORST time to not give out loans to us....small businesses like me that don't qualify on the scale for loans from banks or SBA rely solely on Square Capital for fast help......but no, they approved me and then cancelled on me.

I'm all paid up, ALWAYS paid up MONTHS ahead of time, and had been with them for more than 5 loans now....all paid ahead of schedule.....

this is very disheartening....

[Stephanie-pierc]

Having many loans through Square Capital over the years I’m wondering if because of Covid happening if they are not offering any loans at the moment. My loan is %100 paid off and no offer yet. This is unfortunate seeing as though people are still working and still keeping their businesses open. Anybody receive a capital offer recently? 

[jaechandler68]

@Stephanie-pierc 

Welcome to the "Square has hang us dry club". So far in this thread (and the admin keeps merging them. So we know for a fact they are reading this.) they "Paused Square Capital" so they can focus on PPP loans. We stopped using Square when we paid our last Loan. I'm hanging around just in case.

[Stephanie-pierc]

Well I have never had issues with square so this is my first real issue with them. I flat out asked customer service if they are still offering capital loans at the moment and the answer I got was “yes we are still sending offers” but I’m pretty sure they are not.  Then I get the answer of “we check eligibility on a daily basis and you will be notified through email and your dashboard”

so here we all sit....and wait 

[ecantiques5]

@Stephanie-pierc 

I have no way to know what is really going on with Square Capital...they will say one thing and then behind the scenes being doing the EXACT opposite. The admins here have used ambiguous verbage such as " reducing " capital offers,  or reevaluating our capital program to ensure best lending practices. But not one of Square's thousands and thousands of sellers have posted about receiving an offer since we all set sail on Covid ordeal.

I do see they are no longer accepting applications for PPP so perhaps they may begin offering them again. But Square Capital let me down when I needed them most. We have had several past successful loan completions, process revenue daily even during Covid, have broadened our new client base and maintained a steadfast returning client base.

So for now, just because we recently invested in their terminal for our shop we will continue with Square but as soon as I get some time to research some other processing options I will choose my processing company accordingly.

This really was a significant breach of our partnership with Square.

I gotta say... I really have enjoyed not having that loan repayment percentage tacked on to my processing 😊

Wishing you the best😊

[vitamingal]

same here.  if I hadn't invested in the whole pos/processing/ipad thing with them already, I would drop it.  It's not like they are cheap on the %.

They approved me in April and then cancelled me after 2 days. 

I processed all thru covid and did ALWAYS paid up MONTHS in advance.  This is really bad timing and really screws up small businesses like me that need them the most and they need to understand it's us that keep them in business....

this is awful.

Also, my Square card got hacked into and it's been 3 months and I still didn't get my money back....it's crazy

[lacey2901]

My square card was hacked last week for over 3000.00 and I haven't received any of my money back either.

[Stephanie-pierc]

Has Anyone out there in the Square world Received a capital offer lately? Just wondering if there is any square capital business even happening right now.

[tammyhale1074]

I have paid 2 off, early, and no offers. I even emailed them and got the standard answer. We are reviewing everyone and sending out offers for eligible customers

[Cajuncoffeeshac]

we have just paid off our 5th loan of 40k in 6 months with square capital and even though they continue to say we are being evaluated, still no new loan offers. my belief is that they have stopped offering new loans until they recover the money they are loosing from the business that has closed and cant repay their loans. 

[eshallure]

40k?! sheesh... my highest loan was $4000 i'm a super small business. so i'm starting to realize, maybe square business is bad right now. they're giving us all the run around, honestly think they're scared to lose all their customers. My sales lowered drastically but i wasn't about to keep giving them 20% on top of 10% tax & extremely high apr

[ecantiques5]

@Stephanie-pierc 

No nothing as of yet

[Wvcupcake]

I'm sorry, but I don't understand how we are supposed to believe that they're checking for our eligibility but still no offers are coming. We have never paid this much into our Capital without receiving an offer, we have not only survived through covid-19 but we have managed to come up with new and innovative ways to sell product and we have thrived. And all along I kept telling myself just hang on because your Capitol offer will be coming. If they have done away with the program they need to be honest and let us know. If we're not going to get this Capital that we have gotten without issue for almost seven years now they need to be upfront and tell us that. If we're not going to get it we may not survive.