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

[DJSQUARE]

What is your direct question? maybe I can help you with one!

[snackshack]

I have been with Square since 2011 and have always paid my loans off early.  All of my "requirements" are met..........new customers, returning customers, etc....  I was very lucky that covid did not affect me as it did others.  However, not a peep from Square Capital.  I have stuck with Square even though when they started charging the ten cents swipe fee it caused my monthly fees to go up over $100.  However, with no capital offers I have no reason to stay with Square.  So who is everyone looking at?  This will cause me to leave them.  If they are not going to be loyal to their customers, why would we be loyal to them? 

[DJSQUARE]

Hey snackshack,

Time is money and money allows time! With millions of customers all need a turn, not sure how they do it, but know if you leave you will never get an offer.

[snackshack]

I did speak with my Square rep after posting this and he stated that Square just opened back up capital.

[Tritter82]

I received a new offer near the end of August.  It was considerably less than previous offers, but quite understandable during these times

[bighitvapor]

did you actually receive the offer or take what they offered

[Tritter82]

Yes, I accepted it and it was approved the next day. Be sure to check your dashboard, I never received an email saying it was being offered

[DJSQUARE]

Well your doing good if you have your personal SQUARE Rep HOW YO DO THAT?

[snackshack]

I honestly could not tell you how I ended up with a rep.  I have had very few issues with Square over the years but like many comments I have seen in the past getting in touch with someone is near impossible if you have a problem.  One day out of the blue,  I received a phone call with an introduction of I'm your Square rep.  He gave me his personal number and said anytime I needed anything to reach out.  And anytime I have called him, he always answers and/or phones me back within a 30 minute span.  

[Kenwade]

Was wondering the same thing.  I'm at 95% and typically see another offer around 75 or 80%.  It's really frustrating and annoying.

[Usmcvet88]

Does anyone know any alternative merchants? I have been a loyal customer with square since 2014 and run a locksmith business with sales every day. I have had multiple loans with capital and always paid them off faster than they were ever due. We need to upgrade some equipment but get zero offers. I believe they are doing this on purpose to small businesses right now. Im fed up with it at this point.

[bigpoppi]

@Usmcvet88  - not really sure what is going on.

There have been some who have received offers.

I received one almost immediately as mine had been paid off. Then when I accepted it was denied. I had a second loan with another business that had an outstanding balance of less than a $1000.

I then paid that off in about two weeks and it's been almost 2 months since and no word.

I have been with them since 2014 and paid off 7 or 8 loans, all in advance. They were in the lower third of 5-figures. The offer I received was a fourth of the last one I paid off.

Never had a charge back, only a few refunds and a 60-40 mix of new and returning customers. I'm also an essential business and about 60% are medical doctors.

So not sure what is going on, but I like you could use the additional funding as ad rates are down and it's a great time for me to increase ad spend.

One person said recently make sure and login and check as they didn't get an email notifying them of an offer.

[PureEssenceSpa]

I’m in the same boat mine is paid down to 88% and 2 months ahead and no offers. The loans they gave were one of the reasons I loved square. Businesses can use the help more than ever. We still have good sale number but 3 months of Covid shut down hurt us and we could is the loan to bounce back

[Myc]

I too have been waiting and I keep checking because even my business could use the help ,Covid destroyed many of plans for advancement. a loan would sure help but my business is getting back to normal unfortunately my loan is also 85 %paid off and normally I would have received a new offer by now. That has yet to happen.Now I did also use the PPP but being a sole proprietor i really count on my business to provide for my family. I feel as though we won't be receiving offers until next year because they will have more control.

My business has normalized and I feel that we should be able to receive these offers ,however I am starting to see the issue as political

[SullivanBlue]

I got a offer a few weeks ago. Almost paid it back already. Be patient it will come. They are just worried about the world kind of still being up in the air with a lot of things. It’s super frustrating but trust me I know. We are a photography company and all of our commercial shoots have been pushed. Sucks but square does offer a lot of free stuff now they did t before. Their marketing stuff is solid. Can generate quick sales. We know that if we send a quick email blast no monthly we can quadruple our incoming for a big cash infusion. Doesn’t hurt to email them and ask for a break of transfer fees or processing. Never know. They will work with you trust me. 

[snackshack]

I did finally get an offer but it wasn't even a fourth of what I had received numerous times in the past.  I did not accept it and it has increased approximately $1,500 but still nowhere near where my offers are normally at.  Fortunately, my sales are up so I have no need for the loan at the time. 

[Nicjohnsen2]

You received an offer? I’m at 90% over 6 months ahead of schedule. I’ve paid off numerous loans with them and always get an offer around 80%. I could really use an offer right now but after reading through these comments I’m nervous one won’t come. 

[Myc]

Yes I received an offer yes it was for less than the previous loan but the fact is I received an offer at 90%

[Kenwade]

Finally received an offer in the 11th hour!  Albeit significantly lower than the previous amounts offered but I get it.  Square needs to learn to be more transparent to it's customers about what's going on and not keep us in the dark like this again.

[Ms_Misty]

Hi All,

Figured I should update. I had received a significantly smaller loan in September. I’m about 70% paid off and already received another offer for double. It’s still far less of an offer than where I was at pre-Covid. But it’s hopeful 🙂

Totally agree on the transparency but figured they went with self-preservation rather than a mass exodus. There was definitely a better way to go about it with some integrity. 
For anyone doubting the loans. Take them. Pay them off. You’ll get bumped up, and with any luck, we’ll all be back to where we were before this whole dumpster fire happened. 

[DDS]

Really glad to hear you were offered something else that gives me a little hope I just paid off my seventh loan and this one was barely enough for me to even take but I decided if I didn't I might not get an offer again...my business has never shut down and I've done even better on sales and I got a loan offer of under $5,000 the first time in 2020.. and then finally I got offered $700! I'm definitely looking into other avenues because now that I've paid this one off last month there's been no other offers! so I'm definitely not happy with who I've given my business to over the years and that will soon change.