How does Square capital algorithms treat Covid lockdown

[Nana3]

I have sent questions directly via email too but I like to hear opinions from others too...

I feel like local “offline” businesses are unequally penalized by square capital algorithm after this Covid pandemic compared to “online” businesses.

My understanding of square capital qualification is based on some kind of algorithm square built based on sales with square platform. Now, one of the things built in the algorithm seems to be how active the seller is on square platform, which is understandable and could predict the health of the business well under normal circumstances.

However, during this Pandemic, many local “offline businesses” were forced to close temporarily because of local/state governments’ decisions.  This closures are not necessarily reflections of health of the business because it was pretty much a nation wide lockdown from the government.

As for my restaurant business inside a mall, we had to close for about a month and half.  Now that we are back open and in fact we have much more delivery business than we did before lockdown. My business is growing faster now. I have paid off around 65% of the previous square capital loan. Fortunately (or unfortunately) we didn’t have to depend on loan payment relief from square because the lockdown was less than 2 months and we did surpass the minimum payment anyway.  

But now, I feel like there won’t be another loan offer any more for long time because I was suddenly “inactive” for almost 2 months. I am pretty sure the algorithm would see this as big negative... unless square decides to include some kind of exception in algorithm during the lockdown.

I would say square is throwing away a lot of local offline businesses and put unfair incentive only for “online” businesses that didn’t have to close during nation wide lockdown if square doesn’t add This consideration in the algorithm. 

Let’s get together and let square know we “offline” local businesses are a big part of the community too! 

Let me know what y’all think!

[lisasomerville]

Square has indefinitely suspended Capital across the board, so it doesn't matter what the algorithm is. 

My guess is that it has something to do with the switch to being able to apply for a PPP Loan through Square, but many others suggest that the halting of Capital is because of COVID in general.