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

[bigpoppi]

@danengine2004 

What a lame way to run a business!

Why wouldn't they use their "algorithm" if they have one to see who was processing through all this and continued to pay off their loans? Obviously, showing their ineptitude once again.

We just paid off our 9th loan I believe and did bigger numbers the last 5 months than any period in 6 years processing with them..... Just goes to show you don't have to to smart to be in business, meaning Square.

We are strictly an online essential business with an outsourced shipping/fulfillment center in a state that is open.

My address is in a state with heavy restrictions but I haven't been there since this whole thing started. 

Oh well, we'll continue the search for another processor.... but in the meantime nice getting all my money daily!

[Ms_Misty]

I wish I had found this thread earlier, for many reasons. I am devastated to find out this terrible news. I’ve completed 5 or 6 loans. Always had offers. Have been, and remain, busy. And have come to rely on those offers to expand my business in many ways. 

I’m at 88% complete and no offers. Obviously. Because they’ve clearly halted these business loans and left us hung out to dry. I went to Jackie’s Twitter. Which I recommend all of us do. This needs to be public, beyond this seller community. 

I know others are looking at other options, any recommendations that are close to the square format? 

Honestly though, I’m thinking of going back to checks and cash. Have been for a while. Given how small business has been treated, these large companies don’t deserve a cent from our businesses.

When I think of how much I pay annually to provide this convenient service for my clients....I’m not sure it’s worth it. 
I was cash and check before....and I **bleep** well can do it again. 

Thanks to everyone who has posted the facts in this forum. Please go to Jackie’s twitter and post there too. 

[oneggorin]

still a smoke screen from Square

and from what says going to keep us in the dark until 2021

i have been with square for more than 7 years i feel they are not taking all of us serious.

They really don't care what we think about their actions

I have a computer store and repair service and was expecting to invest in items for the school year weighing my options for another provider as well

[bigpoppi]

@oneggorin - I agree

[Jwp32708]

What is stupid about their decision process is that they have all the data in front of them as to those businesses that showed growth, stagnation or decline in sales due to Covid-19. They had a great thing with Square Capital, though the interest rate was high, it was the convenience of it for a short term loan that made it ideal.

All I have to say is that they better reevaluate their program fairly quickly, or many will look for alternatives for their merchant processing needs.

[bigpoppi]

I did a quick Google search on Celtic bank and found this and their relationship with Square.

It appears the same Jacqueline lady wrote this editorial that posted the info on Square becoming a bank.

Paragraph 2 says they are transitioning from a merchant cash advance service to flexible loan product. Looks like a new program with different options....

https://squareup.com/us/en/townsquare/square-capital-now-offers-flexible-loans-to-boost-lending

When we launched Square Capital we had a clear goal: get money into your hands quickly to help you grow your business. We eliminated paperwork and lengthy application processes so you could get the funds you need as soon as the next business day.

We are now transitioning from a merchant cash advance to a flexible loan product to help us expand the program and further empower you to reach your goals. You love Square Capital — over 90% of you who have been offered a second Capital offer have accepted it — and have shared with us suggestions for how to make the product even better. For example, with flexible loans, we now offer an early repayment option, which gives you flexibility to repay when you choose.

Square Capital is still as fast, simple, and transparent as ever. There is no burdensome paperwork to apply, qualified sellers can get funds as soon as the next business day, repayment happens as a fixed percentage of your daily card sales, and the cost of the loan is a fixed dollar amount that never changes.

So you might be wondering, do I need to do anything different? Nope, just check your Square Dashboard to see if you have an outstanding offer through Square Capital.

We love hearing about how Square Capital has helped so many of you increase sales and reach new business goals, and we want to be part of even more of these success stories. We’re excited to grow this product alongside you and your business.

[Spector]

Like any other business, they are managing risk and are betting that despite lack of transparency and being forthright, most of their customers are going to take the money offered at the terms offered when offered, some won't. For our business, it's a wait and see.

Had recently paid off the capital loan, only then realized they didn't offer a new one.. In having a couple needed weeks off recently (maybe a couple more) I happened to talk to my bank about something unrelated and then asked about line of credit. We have excellent credit and haven't applied but were told having access to either side of 50k would be pretty simple (and probably cheaper). Haven't done anything just yet, we shall see 😉 

This kind of situation is akin to we need them, they need us.. but we shouldn't be taken for granted either, and people tend to vote with their wallets and feet.

[DJSQUARE]

It would be most wise to watch the subject matters you speak of as there are many issues that goes into getting a SQUARE loan. However, you have ever right to your thoughts but please note SQUARE is learning ever day, bring on new ways to better yours and my and 1,000's of other small business needs. Your other alternatives merchant processing needs is what (PAYPAL). Who does better than SQUARE in ways to help our businesses?

[Cehardt6280]

Has square capital once again disabled lending? I have always remained on top of my loans, mine is nearly paid off as well and like others have typically seen an offer at around 80%. 
How can we stay on top of when this service is suspended and not? Square capital has always been my primary reasoning for maintaining square cc processing so this is important to me. 

[CkAQ]

Square is being wholeheartedly deceptive about this issue. They certainly are not issuing loans in certain states, even to essential business. They will send the same 2-4 robotic, canned replies to any inquiry you send on this matter. Personally, I believe they are trickling in a few new loans to string customers along until next year. Square appears to be opening their own, chartered capital bank next year, and will likely be ceasing loans through Celtic bank. That is completely fine if they would have been honest about it from the get go. Sadly, they would rather attempt to string customers along to protect the ever valuable stock price. Pathetic...Square's handling of customers during COVID-19 and their own transition has been nothing short of reprehensible. We are an essential business in Texas, and have flourished during COVID-19. A fact that we are very grateful for. We have had 8 existing loans paid off early, and are 91% paid on our existing one. We have had no new loan offer, and have asked them to be honest at least 40 times since March. 

[DJSQUARE]

Hi CkAQ, does it really matter where SQUARE gets their customers approved from so long as they get the needs of their clients. Banks do the same thing in getting money to feed their clients, as well many others. Money turns money!

[Dirty2Dreamy]

Anyone still getting Square loan offers? or have they stopped doing Capital all together?

[Shagari_j]

Does anyone have any idea of what makes you eligible for another at this point.  I have paid off 10 previous loans months ahead of schedule and received another offer at around 80% or so.  Now I pay off the 11th with 100% and it says ineligible.  I have had outstanding sells even through Covid.  I know that they are focusing on PPP and other people not able to pay since businesses are impacted but our dashboards shouldnt read ineligible simply bc you are no longer offering it.  I hope for more transparency from a company I have been faithful to for all my processing needs for 6 years 

[Regina_B · Accepted solution]

Hi Seller Community, I hope you all are well and staying safe! I wanted to provide an update on this thread. If you have time, please take a look at Jackie Reses’s email that was sent out. @RadioMcG  has kindly copied and pasted the letter in this thread. In short, eligibility for Square Loans loans was paused temporarily so we could address how COVID-19 has impacted our sellers’ businesses, as well as our own. As of now, some business markets have stabilized so we can responsibly provide access to loans to some businesses once again. For the time being, we have had to tighten our eligibility criteria to account for local and state restrictions related to COVID-19. Due to evolving health guidelines, your offer may be smaller than expected or the offer amount may shift in real-time.

If you do not currently have an offer available for a loan through Square Loans, please know that we will continue to check your eligibility on an ongoing basis. If you’re eligible for a new loan through Square Loans, you’ll be notified directly on your Square Dashboard and via email.

I hope this information is helpful. Thank you all for being valued Square sellers!

[dmdale0318]

Shame on square. As much as all of understand the financial climate we all face..we all continue to show patronage to the square brand with little to no assistance when we (the businesses square relies on) are left waiting in the wind. It is extremely unfortunate that Square doesnt seem to recognize that businesses have had to navigate through this storm and recreate themselves in order to keep their doors open. PPP was a joke! It offered such little assistance that for most of us..it was depleted by the time we received it. It would seem that if we can meet the criteria of steady monthly sales and  an increase in new and returning customers...we should be able to secure an offer..even if it were on the lesser side. As merchants we continue to show square our good faith..why are we not extended the same courtesy?? 

[DDS]

Well we finally did get an offer but instead of thousands of dollars like we usually get it was only for $1,000 bucks only.. when I waited 7 days to decide if I really wanted to do it or not they took it away from me. Then about 3 weeks later I got another offer for $750!! I can say it's a business owner I'm very disappointed in square and what they have done for our people! and as a small business owner it extremely worries me for the future whether I should be with square or if I should move my entire business to some other platform that everyone has been recommending.. 

[Lollypops]

Was wondering if anyone has heard if Capital loans were back up and running these days? I am at 96% paid off and haven't seen any new offers

[oneggorin]

don't expect to see any time soon ! they still are not being honest with us i havent heard of anybody getting one

[cmeshine]

Our company received a Square Capital Loan on July 30, 2020.  It wasn't the amount I expected, about 35% less than anticipated, but we did receive and got approved for an offer...  Square Capital is alive!!!

[cmeshine]

I did have to wait until 100% was paid, FYI

[bigpoppi]

@cmeshine  - thanks for the feedback....

It's good to know because I think you said you were a service business and you're in a state that was and still is subject to some strict mandates with quarantines, masks, etc.

We just finished paying off our 7th loan last week and received the email today letting us know... and we're strictly ecommerce and an essential business with record numbers through the lockdown. So even though we're in Cali which also is also hard hit I feel better.

We have another business that we've had 3 loans in. Those are much smaller but we are on schedule to pay that one off as well in under the time allotted. 

Was more concerned