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

[Capnmorgan70]

I have had many loans. I have always paid them back well before the end date. I use it to buy and flip boats as a side biz to my restoration biz. Now, when I can buy boats and make incredible profit, no loan is offered. I don’t understand. You would think that lenders would want to offer loans to those with great track records. It must be Covid related. Smdh

[AlphaMale24]

I am in need of a square offer when will I be eligible? I paid off 61% of my last offer ? 

[Jwp32708]

Does anyone know whether Square Capital is funding MCA loans presently, or suspending loans due to Covid-19, or focusing on PPP Loans? I've been funded for 9 loans since 2014, totaling $190k. In many cases, I'll get offered another loan, prior to the previous loan is paid up. The last loan was paid in full in April 2020. In speaking with representatives from Square Capital, there isn't any "Red Flags," that stands out with our account. All I want is a  answer that makes sense. 

[Anthonyinkco]

I’m curious about the same question. I’m close to paying off my capital loan and I’ve been offered another loan almost every year I’ve been a user of square. However this time I haven’t heard anything. I opted to not get a small business loan since square capital is such a great option for me. Hoping to hear a response soon. 🙂

[agavr2626]

I spoke with a Celtic Bank (bank that provides SC loans) and was told their rep at square said they suspended the program.

[Jwp32708]

Ashley,

That being the case, the people at Square Capital should have been more transparent. I had suspected that Square Capital had slowed down their lending program due to the PPP program; I had questioned this with their representatives on several occasions, but was constantly given the answer that Square Capital was still in place, and that accounts are being reviewed on a daily basis and that approval will be based on Square's algorithms of the account.

I just wished during these trying times, that Square's representatives would have been as loyal to their customer base, as the customer base has been loyal to Square.

[ErinAkey]

I agree totally.  We are strongly considering a move since Square has not been there for us during this terrible time.  We pay off loans early each time and I too was told they were still evaluating daily and giving loans.  I do not like the fact that we were lied to. 

[statewidefp]

I would like you to know that I have paid 100% on time an early I would like to have another loan 

[Costa]

Has anyone received a regular non PPP Square Capital offer in July? Pre-COVID I had borrowed and paid back over $350,000 to Square Capital since 2015. June of 2020 was the highest sales month I have ever had by over $30,000. The rescission of my prior offers which exceeded 100k, was at the time scary, but it forced me to pay off the existing balances which was $40k or so. Now I owe $1500 to Square Capital, but I have no offers.  

Really just interested to see if anyone else has gotten any offers recently, and what that sales situation looks like to have qualified. 

[Jwp32708]

Costa,

I saw that you had messaged Jackie Reses directly. How were you able to reach her? Her answer back on June 15 is too generic. A real timeframe would be helpful to many as seen by comments in the seller community.

[ashc]

Hey @Jwp32708,

An email from Jackie was just recently sent out about a week ago concerning Capital loans. It's been copied/pasted on the first page by another seller and also addressed by @Regina_B. 

[Jwp32708]

I saw the posting. As a customer of Square since 2014, I would like the opportunity to message with Jackie directly.

[Pfopnd]

Hello 

my loan is just about paid off and normally I have another offer ? Are they offering them ? My business was doing okay so I took no Ppe loan or anything . I really look forwRd to the capital loans it’s amazing for my small business . I have the whole amount almost paid off in 6 months . 

[Chowie]

I ASSUME they are no longer doing it.....most people who are paid off have not seen an offer since April

[oneggorin]

THERE IS NO ONE THAT YOU CAN SPEAK TO ABOUT IT. THAT IS ONE OF THE THINGS THAT KEPT ME USEING SQUARE I HAVE HAD RECORD SALES DURING THIS CRONA THING AND PAID OFF MY LAST LOAN LAST MONTH AND IT SAYS THAT IM NOT eligible WITCH I CAN'T BELIEVE I THINK THEY JUST DON'T HAVE THE MONEY TO LOAN ANY MORE WILL BE LOOKING FOR ANOTHER CARD CO I BELIEVE

[bighitvapor]

let us know who you pick we are also looking for another POS system square has let us all down and continue to lie about it all

[jaechandler68]

@Hairgirlval good luck getting a decent answer. @RadioMcG has the best answer on this thread. Square has reduce their Capital Loans. BS I say! We've been consistant on sales and waiting for the loan to no avail. PPP is a SBA loan. Square doesn't want to deal with us right now. All mine says is, "NOT ELIGABLE AT THE MOMENT but keep checking (and swiping maybe you'll be eligable. Maybe.) 

 @ashc right!

[Havasuautoworks]

Ppp loans do not fit my company. My sales have increesed since the corona. And we paid off our capitol loan 4 months early. Still not able to qualify fir ppp. Because our employees are 1099. Wheres square to help there biggest supporters.  Bring back square capitol ! When will this be avalibe again. 

[radicalEdward]

Aside from the PPP and other Post-Covid lending options that have seemed to sprout up in rapid succession, will Square be providing its more normalized capital loans program to its users? Has anyone gotten any offers since around March until now? I used to get offers pretty regularly (10 over the last 5 years) but only see "non qualified" and "explore lending options". For the record also, my business did not close during the shut down and we've had some record months in terms of sales, so there should not have been any dis-qualification based on revenue or our state of being open. Just curious. Thanks!

Ed

[Staleygeneralst]

I am in the same position as you. Since the Covid issues they seem to have focused on loaning Fed $$.

With my current sales I am shocked that I haven’t received any loan offers.

[Fotopet54]

Can you please tell

me if you will starting square capital loans again anytime soon....or if you are ever going to start them up again?  I have a loan offer from another company but don’t want to take it if there is a chance of getting another loan from you in soon.  I applied for the SBA  loan and was turned down....no idea why.  Please let me know if you aren’t going to have the square capital loans anymore....thanks!