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

[Havasuautoworks]

Same here we paid our off 4 months early. And still no offer to reloan. And we to do not qualify for ppp

[ErinAkey]

@ashc is there a date of when this program will be back up and offering new loans?  I was lied to on the phone and told loan offers were still going out.  I will be changing processors if this program is not back this month.  We stay loyal to square due to this partnership.  We are opening a second and third location end of the month and will NOT be using square if this program is gone.  PPP is guaranteed by the government and should have zero to do with Capital.  Someone needs to advise asap.

[Front2back]

We have 5 loans paid off and all were paid off withing 6 months  out last loan has been off for over a month now without any offers or anything from capital.  We used to receive offers after our loan was past 75% paid.  Just curious if it is because of covid they are not giving out any capital or what the deal is.  We didt want any of the government loans for ppp or any of that kinda figured we would  e ok because our square loan was pretty close to being paid off and we would be able to take out another capital loan to make some improvements and buy some upgraded equipment.  Really kinda disappointed and dissatisfied in the way square is handling the capital loans and really considering going elsewhere to get capital loan and not use square anymore for any of our capital needs or purposes.  If anyone else has had any issues or same experiences let is know 

[Coop5]

Wondering if anyone has received a square capital loan offer in July? I should be eligible but have seen nothing. 

[Fabanich]

Short answer is no.....long answer is that square capital is avoiding saying that quit giving out loans and instead are evading the question with half answers and things like"we evaluate every account daily"...they don't want to lose so they pulled all capital funding offers.  Sorry. We r all waiting or looking into other options.  

[Shagari_j]

NO.  They also sent out an email saying that the installment program that allowed all our clients to afford big purchases was permanently done away with.  I may as well be processing through my bank at this point if they are getting rid of everything I loved about processing with them. 

[cmeshine]

Our company has recently received an offer for Square Capital and is currently being reviewed.  Our company paid 100% of our previous balance and received the offer a day after.  The amount was lower than expected, nevertheless, Square Capital is alive!!! 

[Fabanich]

Congratulations You are the first I've heard about getting an offer after covid March 1st. Keep us posted on how it goes. 🙂 

[cmeshine]

Will do... I hope this brings hope to those who maybe next!!! 

[kds1014]

I read that the Square Capital program was paused. Then I saw the standard statement that if you qualify it will appear on your dashboard. But has anyone gotten one?

[DDS]

yes!!  August 15th 2020,  I just received my first capital loan offer today after years of being with the company and having thousands of dollars like everyone else paid off early! So I'm really shocked that $1,000 is all they're offering..  sorry but that's not enough for me to even blink at! It's not worth the lower payments I'll be getting for that amount..really wish that this company was more transparent after many many years of being with them and increasing my business I'm not as big as some of y'all but I do okay for a 2 to 3 person team!..I just really wish like everyone else I see posting that this company had our backs when we desperately needed it...makes me sad... Me being as a client meant nothing to the big fish!

[bigpoppi]

@cmeshine - congrats! You are the fist we're ware of.

Was that this week?

Curious as to the state since that now seems to be a factor?

Thanks

[cmeshine]

Yes, I received the offer on July 30, 2020.

[Jwp32708]

So out of curiosity, if you are willing to be open, how many loans have you completed in the past? How long have you done business through Square? What was your previous loans you were offered in the past compared to your recent offer? What state are you located in?

Sorry for all the questions, but it'll give the rest of us an idea of the direction that Square is going with their Square Capital program. 

Thanks in advance!

[cmeshine]

We have completed at least 8 Square Capital Loans, been with Square since 2010, and this business is located in Hawaii.  The amount was maybe 35% less than I anticipated.

[Jcrbullrider]

Recently finished a loan with square, took approximate 5 months. Was hoping to be offered another, but no offer.

Have they stopped for a bit? Lent all their resources to PPP, and have little left?

Anyone with knowledge about this, I'd be grateful if you could share your knowledge. 

[bigpoppi]

@Jcrbullrider -

PPP money isn't Square money.

Funding comes from the government thru Celtic. 

Remember, much of the money will never have to be paid back and what does doesn't start for 6 months I believe. That money was at 1%

I believe Square made some kind of referral commission.

[pawsNclaws]

just paid off our 4th loan and usually have an offer waiting or have been offered one before the payoff date. But nothing this time. Didn't know if the virus was putting a stop to you loaning money right now.

[bbohl]

My square capital loan has been paid in full.  Is square no longer giving capital offers, or just during covid?

[aspphotography6]

I paid off my current capital and usually I have instant offers. Is square not extending new offers at this time? I have had 4 offers within the past couple of years that usually show up when i am about 85% paid off. I completely paid off this loan and am surprised i don't have an offer yet, unless they are not extending new offers because of covid. has any gotten any new offers recently? 

[alchemy33]

I noticed updates to the Square Capital Loan dashboard! Are we back on track? My business shows as ineligible (even after significant growth), so I’m wondering if anyone has received a loan offer?