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

[Jwp32708]

Palexisbhair,

I find your posting interesting in the fact that your Square Capital representative is indicating that the Square Capital program is temporarily paused and working to bring back the program, I received the following message from a representative of Square Capital back on 08/20/20:

Thank you for reaching out. My name is Paola and I am the Complaint Manager following up on your case.

We want to apologize if there was any misunderstanding or miscommunication. Eligibility for Square Capital loans was paused temporarily while we sought to understand how COVID-19 impacted our sellers’ businesses, as well as our own. To help our sellers through that time, we were focused on facilitating the Paycheck Protection Program and working with sellers who needed payment relief on existing Capital loans. As of now, some business markets have stabilized so we can responsibly provide access to loans to some businesses once again. If you are not currently eligible, we’ll continue to monitor your account and let you know if you’re eligible via email and through your Square Dashboard.

I hope you find this helpful. Please don't hesitate to let me know if you have any additional questions. I'm always happy to help.

Warm Wishes,

Paola
Square Capital Team

From the message, it indicates that Square Capital has restarted its lending program. But from reading your message, Square Capital customers are getting mixed messages again. Transparancy from Square and Square Capital is going to be key moving forward with their customer base. Either Square and Square Capital gets their act together with a uniform message, or much of their clientele base will seek other options. 

[Palexisbhair]

My message was received on 7/27/2020, and I haven't heard anything about a reinstatement of the Square Capital program except on this board. My guess is, although I'm an independent contractor hairstylist in TN, and beauty salons were put into Phase 1 Reopening back in May, I won't be getting any offers until they reopen all small businesses back TN. I'm already seeking other options. 

[bigpoppi]

9-1-2020

Square is offering loans. There have been people in here who have said they have received them since they stopped processing PPP loans. The new offers started on 8-1-2020.

I have also posted in here that I received one. 

I paid off  a 5-figure loan on 8-4. On 8-12 I was offered another loan at around 1/4 of my last two loans that were all paid off before a year. (I have had 9 loans paid off) My business grew during COVID.

I took their offer since I use it for FB ads that return much more than the money costs me.

On the same day I accepted the loan I was turned down.... the reason was I had another loan for another business with them that had slowed down some but was still meeting it's obligations and would have been paid off within the year.

I had them add that loan to my other business on 8-14 for payment and it was paid off on 8-30. So all my loans are paid off. My sales numbers are above last years. I'm an essential business online that operates even in a complete shutdown.

It will be interesting to see if they send me another offer. The last one took 8 days to receive the offer. Today is day 1.

I will update if I hear something.

[brown17]

Interesting.   I received same emails as above.  My loan has been paid off since March, My sales are up and I never shut down during covid.   I have yet to receive another offer....Seems as if they have new protocols and are giving people the run around. 

[Autorepair1]

I guees square still has everyone hung out to dry still. I am at about 88% and no offer. I will be looking for different processor immediately. Its nice to know that we consistently pay off early and this is the way they do business. Anyone getting offers?

[brown17]

Don't hold your breath.   I have been paid off since March, never shut down business and sales are up and nothing...................

[Collegehelp]

I am not - i am a prompt and quick repayer.  Never had a charge back.  And only getting generic replies from Square now..

[DJSQUARE]

Hey Brown17: Square Capital is based on many things: Total Sales, Pay Back Time, History of sales coming in, how one done on their 60 day min payments, and how long it tkes to pay back. SBA loans seem to work best for businesses that have 8 or more workers. Its my thoughts of now 6 SQUARE CAPITAL loans. I have to say, I feel and have felt the way you and others feel, how ever its there way of doing it, and you just keep charging, & any day you will get a invite in your SQUARE dashboard

[brown17]

Well I have l met all criteria you and they have said.  I have sales everyday, they are up never shut down  all my loans paid off early and never late, im essential and still nothing.   I have lost all hope.   I will continue to use square as I use other features but the main reason for me doing business with square was for the loans which are non existent for me.   Thank you 

[Collegehelp]

I have received nothing.  I paid off my last SQ loan very early.  My sales are actually up.  Not a peep.  Other CC providers are more competitive on rates and swipe charges

[Joe]

Hi @brown17 - I can provide some extra clarity, here. Square Capital loans are extended and regulated by our Capital Department. Loans themselves are viewed individually, meaning that eligibility for a loan is not dependent upon past loan status or success. To be considered for a new loan, continue to be a strong Seller and we will reach out when we have a new offer available!

[brown17]

Joe, 

Thanks for the input.   I am a "strong" seller.  Still nothing.   I never shut down.   I have already begun looking elsewhere for Credit card processing.   Besides the fact that 

square has no answer to why I have not been offerred another loan as I meet all criteria there are so many other things wrong with the system.   You cannot get a ledger of sales that a bank will accept for loan, exporting to an excel sheet does nothing.    My payroll is so messed up because I changed from a DBA to LLC and was forced to open another payroll account because of it instead of just changing my current payroll account which has resulted in me being charged for two accounts, and my q3 was unable to be filed through square (which I payed for them to do) because of the change.   I was contacted by square and told I had to call and handle it myself but they took my service charge that month.  I enjoyed square before COVID.  since then they have not been upfront about anything.   Very disappointed.  Good luck to all. 

[brown17]

Thanks.  I did all that, never shut down had consistent processing and nothing.   

[Nicjohnsen2]

I finally ended up getting an offer last week once i was 93% paid. The offer was for 1/4th of my last. I took it in hopes they’ll go up next time.

[Palexisbhair]

Update: I finally received a loan offer today after being 93% paid on my 8th capital loan. The offer was about 1/3 of my last loan, but I took it because I didn’t want to chance them reneging it since they emphasized the loan offer being a “limited opportunity”.

I also saw in the loan terms that the bank is now Square Capital LLC—so they’re not using Celtic Bank anymore. I wonder if they are now only offering loan amounts that they figure will be paid before the end of the year as Square transitions into financing through its own bank. There was also a note  in the loan offer about a promise of transparency as this transitional period progresses. There is hope yet.

[bigpoppi]

Congratulations!!

I've been waiting since my last 5-figure loan was paid off end of July. They offered me a new one at 1/3 the amount around 10th of August. Then they turned me down because I had about $1000 outstanding on another loan with them for another business and I said Ok, add it to this biz. I then paid that $1000 off by the end of August.

So all my loans are paid. Sales are still higher than ever and it's been 3 weeks with no offer. I was approached by another MCA company who is reviewing my app and I'll have an answer tomorrow. I won't have to change processing so I'll stick with Square. They work great with my existing ecommerce platform. So it's down to the wire for Square to make an offer!  😉

[kbuckins]

Hey, bigpoppi--Are you okay with sharing who this alternate MCA company is? I've averaged two Square Capital loans per year by paying them off at the average rate of most sellers I've noticed on here before being offered another loan, since around 2014. I'd like to remain with Square for my Capital funding because they have record of my history, but an alternative would be nice. I'm eager to grow my counseling business into a nation-wide coaching practice, but I definitely need at least the minimal funding to do it. Thanks for sharing your experience, and granting any insights! And congrats on the option.

[bigpoppi]

I know someone who did that and they banned him from the forums. 

[fordhamr]

Aside from Monday, it seems things have been quiet! Now that Square has opened their offers back up has anyone been receiving offers within the past couple of weeks?! I know a lot of people were anxiously awaiting offers! Thanks in advance!

[RadioMcG]

Yeah right! I wrote to them yesterday too asking for some very specific answers...got the SAME generic response. Can't even get a decent response let alone any funding. 

[DJSQUARE]

9-25-20 / RadioMcG, Trust me when your account comes OK, for a loan you will get a offer, I always think the same as you, then I login and up pop the message for a loan. Keep the faith and keep charging as your totals count, as does how you pay back and if you meet your every 60 day total. I know its nuts, but trust me they will see your account soon it sounds to me. It just not based on you paid it off....