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

[Sikhay]

I’m at 98% paid off and still no loan offer from square capital yet. 

[epabully]

Same here

[trtprinted]

Apologies for late post but yes I did receive an offer when I was at about 98%, yes it was paid off very early.  I accepted and then received an inquiry asking for me to explain the decrease in sales.  I stated how COVID had affected by business, what I was doing in ways of marketing to assist with sales loss, and reminded how I had paid off my prior loans within 6-8 months.  I received a response in under an hour with an offer for about 1/3 of the usual amount.  

I did accept.  

A couple days later I received a feedback request, I just sent it back.  I took that opportunity to thank them for the assistance they had given me while my business has been growing however I need a partner that helps me make decisions for my company; not taking my information and turning it into an algorithm.  I informed them after this loan is paid off I will be going to Paypal.

Paypal provides transparency and structure.  It outlines the criteria for a Capitol Loan, how you will receive the Loan, and the frequency of that loan based on meeting the agreed conditions.

In this day and age of technology and Square being a platform based on technology we should receive more information than, "Your loan is based on algorithms and we have no idea when your offer will arrive" 

If they don't know how or when they can help, I will go find a company that will.

Take care all.
M.~    

[DDS]

Thank you for your response and for letting me know about the PayPal capital! I do paid off my 5th loan in six months time and no loan offer and then finally I got a loan offer for only $1,000! That's not even worth my time. Very very disappointed in square capital and what they've done for their customers and you know they read what we write but do you think they've come out with any worse . absolutely Not! They are shameless. 

[Jwp32708]

$1,000.00? That's an insult! They would have been better to save face and offered nothing. 

[Dee39]

Wow!! You guys are acting like square owes you the loan lol...just be happy they do what they do...smh 

[DJSQUARE]

Dee39, I may not have said it has you have, but it is to the point.

[Kbso11]

Anyone know for sure if square Capital is on hold or are there loans still being offered? If they are on hold any chance anyone knows when they will start reoffering?

[DDS]

they just finally offered me one. But it was only for $1,000 and that's not even enough for me to apply for or waste my time on... Crazy... Especially when they have customers that I paid off 5, 6 to 10 loans and all of them paid off early as what I'm seeing

[BNBSigns]

Here is my recent experience. I have been with square for years. I have had 10 capital loans that I have paid off. My sales have increased by 28% during COVID. So needless to say I far exceed what they have listed as qualifiers.. My account manager is amazing and has kept me up to date weekly on what he knows of the capital loan process. I recieved a call 2 weeks ago as he walked out of a meeting that the capital loan program was up and running. He forwarded my info to a capital loan member who called me fairly quickly. Just to be told the same thing, the program is on hold. I have now come to the realization that Square is not being honest or transparent with any of us. They aren't telling us the truth because truth is they know if they are then most of us would leave. I have decided to stop processing with Square. I recieved a 24K loan offer from Clover/ First Data. Seriously yall need to look into it. If not from there then someone. There are alot of companies offering more then square and 90% of them also tKe repayment with credit card sales. We all fear change and I hoped Square would be as loyal to us as we are them. But bottom line is if they weren't there for us during crisis then there is definitely a problem. We are what keeps square a float, and by all of us sticking around we are saying that their deception is acceptable and it is not. My two cents for what it is worth.

[RadioMcG]

I just do not get it! People have been posting that they’re getting offers. California is getting them...New York is getting them...

I haven’t seen anyone say Texas is getting them. We are not shut down here in Texas at all PLUS my business is online only. I’ve emailed so many times and I get ZERO clue as to why Texas isn’t getting offers. One guy posted that his business was closed for four weeks BUT HE STILL GOT AN OFFER. What in the world?! We haven’t stopped selling ONCE during Covid. Currently we are processing more than any other time with square. I am so frustrated. That’s it, seriously leaving after August if something doesn’t change fast. I’ve seen people post here what their businesses have been making along with what their offer is...it makes no sense at all that I haven’t received an offer. I’m done 

[brown17]

I am in NY and nothing.  I have been with square 2 years.  2 loans paid off early.  Sales are up and have been up through covid.  I do not understand why my business is not eligible.   I stay with them for many reasons but this one is a game changer for me.    I may look elsewhere also if things do not change.  

[Jwp32708]

I cannot imagine that employees of Square Capital are not seeing the various comments regarding issues with Square Capital. So to the people of Square and Square Capital, I am giving you one month to extend a Square Capital offer. I have paid off 9 loans with you since 2014, totaling nearly $180k, and have processed over $1.75M in credit cards through Square during the same timeframe.

I have spoken with the people at Clover, who offers a program simular to Square Capital called Clover Capital.

So once again, Square Capital, I'm giving you one month to either make an offer or be upfront to those who has been to Square all these years!

[ZHEMIZ2]

i got a new loan offer at 96% today, and amount wasnt that bad, was at 60% of previous loan so i think is good in tough times, ill be sticking with Square after this, my personal opinion

[RadioMcG]

Wow. I mean great for you but shocking that we haven’t received any kind of offer. We fully paid off several loans at this point, and like I’ve said, sales are up, new customers are up, return customers up, no refunds or chargebacks. What the???!!! 

[brown17]

Same,  And I got the generic Message from square Capital Customer Service.  there is no reason why I have not been offered a loan.   Again there are many reason's i use square but this was my main reason.   Very dissapointed

[RadioMcG]

Still waiting. Still clueless as to how we could possibly be “not eligible”. Zero sense, zero help. There’s just too many other places we could go who offer the same kind of working capital and we will start to build those other relationships come Sept. We have waited so long at this point and with some getting offers who were even closed during quarantine (but we’ve only stayed strong with consistent numbers) it’s a slap in the face. Honestly, it seems like Square doesn’t even know the answer as to why. This system feels more like a slot machine where you just have to be the lucky one and has nothing to do with your actual business.  Stupid 

[RadioMcG]

@Jwp32708 @Still nothing?! Ridiculous 

[Gco]

I am 90% on a loan issued 7 months ago. Sales are up for my business. At this point we have earned the same as last year with 4 months left to go in the year, so a 30% uptick in business. If the next loan offered is lower than the last I might start looking into other processors. It's truly annoying but a wishy-washy lender that uses "secret" conditions to loan money doesn't exactly inspire much confidence in me. 

To be fair, other lenders are just as senseless in their qualifying. My laid off sister in law that makes less than half of what we do and still owes a ton of money on her house refinanced without much trouble. While we own our house and we're denied because we paid cash for our mortgage once.

[Jwp32708]

BNBSigns How long were you with Clover before they extended an offer to you?

[Palexisbhair]

I'm at 90% repayment myself, and my sales are steady. I haven't received a new offer either, and when I contacted the Square Capital team to ask about it, this was the reply: 

"This is Chance and I am reaching out on behalf of Square Capital, LLC.
While offers have been temporarily paused, this is not a permanent decision. We are working hard to quickly bring the Capital program back to eligible sellers. Once the program has restarted, we’ll let you know if you’re eligible via email and through your Square Dashboard.
Please let me know if you have any additional questions."