x
Admin

New round of PPP funding FAQs

Hi Seller Community!

 

Square Capital is excited to participate in the new round of PPP loans. Whether this is your first or second PPP loan, you may be eligible to apply. While we are not ready yet, we expect to start accepting applications for this latest round of PPP soon.

 

We are currently creating a simple online form to make applying for a loan easy. Once our application is available, we will be rolling it out to eligible sellers over time to ensure we can process them as quickly as we can. Please keep an eye on your inbox and Square Dashboard for updates with information on how to apply if you’re eligible. Currently, only businesses with a Square account will be able to apply through Square Capital.  

 

Here is what we know about the program thus far. Please note that program details may change, and we will update this page as we get more information.

 

FAQs
Who can apply?

  • If this is your second PPP loan
    Sole proprietors, independent contractors, self-employed persons, and small businesses with up to 300 employees in operation at least since February 15, 2020, who experienced at least a 25% decrease in revenue in a quarter in 2020 relative to a quarter in 2019, and who have already used or will use the full amount of their first PPP loan, are eligible to apply.
  • If this is your first PPP loan
    Sole proprietors, independent contractors, self-employed persons, and small businesses with up to 500 employees in operation at least since February 15, 2020.

How can these funds be used?

  • Payroll costs (salary, wages, commission, tips)
  • Employee benefits (healthcare and retirement benefits)
  • Mortgage interest payments (not including payments on the mortgage principal)
  • Operations costs (software or cloud computing service)
  • Rent
  • Utilities
  • Property damage caused by public disturbances in 2020
  • Supplier costs
  • Worker protection expenses (marks, plexiglass shields, gloves, etc.)

 

Loans used to cover these costs are eligible for forgiveness, if at least 60% of the loan is used toward qualifying payroll costs and the rest of the loan is used toward the other uses listed here. Any funds going toward non-covered expenses will not be forgiven. Note: If you’re self-employed with no employees, your full loan is eligible for forgiveness regardless of how the funds are spent.

 

For more information on loan forgiveness, check out our PPP Forgiveness Page or visit the SBA’s PPP website

 

How should I prepare?

Preparing your 2019 or 2020 taxes or getting a payroll report from your payroll provider (if you have one) are the best things you can do ahead of time. If you don’t have employees, you’ll need to have a prepared 2019 or 2020 1040 Schedule C form to upload (your taxes don’t have to be filed yet). Whether you apply through Square Capital or with another lender, you’ll need the same documents and information. 

 

Please note:

Make sure any numbers you enter in the application match your supporting documents exactly. It’s also important to upload the exact documents required during the application process. Incorrect documents could result in a delay of your application. For the most up-to-date requirements, visit the SBA website

 

 

If you are applying for a second PPP loan, your business needs to have experienced at least a 25% decline in revenue in a quarter in 2020 relative to the same quarter in 2019

  • This can be calculated on a quarterly basis using quarterly financial statements or bank statements, or on an annual basis using tax forms for the full year 2020.

Determine if you are an employer or non-employer

  • You are an employer if you filed a W-2 for at least one employee including yourself. You are a non-employer if your business didn't file a W-2 for any employee including yourself.

Calculate your average monthly payroll or income 

  • If you’re an employer, it’s payroll. Non-employers will calculate net profit.

 

Organize business and personal information

  • You’ll need things like your government ID, SSN, and EIN to complete the application. 

 

Verify your business was operational on February 15, 2020 

  • The PPP does not apply to businesses started after this date.

 

Confirm if you had employees on February 15, 2020

  • If you don’t employ anyone, your requirements will be different. Either way, the SBA needs to see documentation. 

 

What should I expect from Capital?

  • We’ll reach out via email and your Square Dashboard if you’re eligible to apply. Then you can complete the PPP loan application on your Square Dashboard.
  • Applications will then be reviewed by Square Capital. Next, the Small Business Administration (SBA) reviews applications on their own timeline.
  • If your application is approved by the SBA, funds will then be deposited into your linked bank account in 1 to 10 calendar days after SBA approval. 

 

For more information, and additional FAQs, visit our Paycheck Protection Program article

 

Ani
Gestora de la Comunidad de Vendedores / Seller Community Manager, Square
Message 1 of 230
41,521 Views
1 Best Answer
Admin

Best Answer

Hi Seller Community!

 

Capital has shared a new update in regards to the new round of funding. Please take a look at the most recent thread. Thanks!

Ani
Gestora de la Comunidad de Vendedores / Seller Community Manager, Square

View Best Answer >

Message 205 of 230
13,633 Views
229 REPLIES 229

just read that square would notify us if we qualify for the 2nd round. How would you know if you're not our only third party vendor that we accept payments through? At first you sent an email out saying we didn't need any additional proof if we received round 1 with you.

Message 211 of 230
1,278 Views

i want to pay square capitals balance

Message 212 of 230
1,264 Views

Only if the debt was incurred prior to February 15, 2020 and it doesn't go over 40% of your total PPP.

 

Otherwise it isnt forgivable.

Message 213 of 230
1,382 Views

I suggest if your in for second draw to wait. 

There's more requirement than before and the government bill filtered out the big companies. There will be plenty of funds less. From what I understand, Square is prepping and beta testing the site for bugs next week. Don't ask me how I know... 

Message 214 of 230
1,370 Views

Just wondering if Square is still on to release the application for PPP2 first week of February?

Message 215 of 230
1,237 Views
Square Community Moderator

Hi @mlnnhn

 

Thank you for reaching out!

 

Please take a look at the most recent thread.

 

I hoped that answered your question. If you have any additional questions, feel free to contact us.

 

Thanks! 

Cameron
Square Capital Team
Sign in and click Mark as Best Answer if my reply answers your question.

Square Capital, LLC and Square Financial Services, Inc. are wholly owned subsidiaries of Square, Inc., Square Capital, LLC d/b/a Square Capital of California, LLC in FL, GA, MT, and NY. All loans are issued by either Celtic Bank or Square Financial Services, Inc., both are Utah-Chartered Industrial Banks. Members FDIC, located in Salt Lake City, UT. All loans are subject to credit approval.
Message 216 of 230
1,202 Views

@Ani_ @Cameron2020 

For seasonal businesses, the FAQ says...

  • Seasonal employers may determine average monthly payroll using the 12-week time period starting from February 15, 2019 or March 1, 2019.

But that is not when my business is at peak season. As far as I can tell the SBA states that average monthly payroll costs can be calculated using any 12-week period between February 15, 2019 and February 15, 2020. Is there a reason for your specific time frame?

Message 217 of 230
1,132 Views
Square Community Moderator

Hi @brrzaar

 

Thank you for your question. 

 

If you like to discuss further details regarding seasonal business, please contact us.

 

We look forward to hearing from you. 

 

Thank you,

Cameron
Square Capital Team
Sign in and click Mark as Best Answer if my reply answers your question.

Square Capital, LLC and Square Financial Services, Inc. are wholly owned subsidiaries of Square, Inc., Square Capital, LLC d/b/a Square Capital of California, LLC in FL, GA, MT, and NY. All loans are issued by either Celtic Bank or Square Financial Services, Inc., both are Utah-Chartered Industrial Banks. Members FDIC, located in Salt Lake City, UT. All loans are subject to credit approval.
Message 218 of 230
1,111 Views

I have received an email telling me my application is ready to be fill out . But I click on it and it takes me to square dash board and there is no application to fill out. I been looking everywhere in the app and I can't still find it? Why?

Message 219 of 230
1,046 Views

@PSalon22 did you check the capital tab in the dashboard?  Also check the bell

Message 220 of 230
1,044 Views

Yes, i have done both things.

Message 221 of 230
1,068 Views

Where is the second PPP?? I had the first and need the second but if square isn’t going to offer it to me I would like to know so I can apply elsewhere!!! 

Message 222 of 230
919 Views
Square Community Moderator

Welcome to the Community, @ES57

 

I have moved your post to a thread where there is more updated information on our PPP Funding.

 

Check out the Best Answer by @Ani_

 

Thank you! 

Kassi
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 223 of 230
870 Views
Beta Member

I went on the SBA site & found that square had used my SSN not my EIN for the 1st round PPP. (This loan was forgiven in November.) I have applied for the second round and it has been sent to the SBA. This loan does Not however show on my account. I have been told by accountant that since my EIN was not used the 1st time they will not accept the second. Anyone had luck with this? Thanks

Message 224 of 230
869 Views

Other information says PPP Application when available works best with Chrome 79+ as one of choice browsers to fill it out with. Mine is Version[Redacted] (Official Build) (64-bit) of Chrome. Is this suitable to fill it out when it becomes available?

Message 225 of 230
523 Views

If I just applied for PPP 1, How long do I have to wait to apply for PPP 2? Also, When do you ask for forgiveness? I am in the very beginning, just curious.

 

Thanks for information!

Message 226 of 230
253 Views

Hey there @H2U 

 

These are great questions, thank you for posting! I'd be happy to provide some more information. 

 

SBA guidelines state that borrowers who received a first-draw loan are eligible to apply for a second-draw loan at the end of their covered period, which is at least 8 weeks after the origination of the first loan.

 

Based on the current indications that PPP funding may run out soon, we will not be able to offer second draw loans to sellers that received their first-draw during this round of PPP unless Congress provides additional funding to the program.

 

Regarding your question about forgiveness, Square’s deadline to apply is 10 months after the 24-week covered period. You’ll receive a notification from us through email and on your Square Dashboard when you’re eligible to apply. For more information, take a look at our Forgiveness FAQ.

 

Thank you for your patience with us during this process, we know how important this funding is to you and will let you know if we can support additional PPP funding in the future. Please reach out if you have any further questions or concerns! 


Olivia
Square Capital Team
Sign in and click Mark as Best Answer if my reply answers your question.

Square, the Square logo, Square Capital, and others are trademarks of Square, Inc. and/or Square Capital, LLC. Square Capital, LLC is a wholly owned subsidiary of Square, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY. All loans are subject to the terms of the SBA Paycheck Protection Program. Square Capital, LLC is the servicer of your PPP loan and is a licensed servicer and debt collector with the following License Information

Message 227 of 230
134 Views

If we are a hair studio business with individual renters, our booth renter income went up in 2020 compared to 2019 so it looks like we made more money even though we lost about $10,000 for the three month shut down. We should’ve made $10,000 more in 2020. How do you calculate that when you still lost money while your business grew in the same year? Any clue? 
Melanie

Message 228 of 230
261 Views

I was told by squareyou would have to prove it by certain documents but wouldn’t tel me what I would need 

Message 229 of 230
216 Views

I am trying to apply for the PPP first draw loan. My opening date was Oct. 30 2019. For the year of 2019 I only was in operation 2 months. Will they take the gross for just that 2 months to calculate the loan offer or will they adjust knowing that the gross was only for 2 months. I have been trying to find the answer and can not find. Thanks

Message 230 of 230
100 Views