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Is SBA replacing the Square Loans?

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?

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👋👋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. 

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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

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Hi Seller Community, I hope you all are well and staying safe! I wanted to provide an update on this thread. If you have time, please take a look at Jackie Reses’s email that was sent out. @RadioMcG  has kindly copied and pasted the letter in this thread. In short, eligibility for Square Loans loans was paused temporarily so we could address how COVID-19 has impacted our sellers’ businesses, as well as our own. As of now, some business markets have stabilized so we can responsibly provide access to loans to some businesses once again. For the time being, we have had to tighten our eligibility criteria to account for local and state restrictions related to COVID-19. Due to evolving health guidelines, your offer may be smaller than expected or the offer amount may shift in real-time.

 

If you do not currently have an offer available for a loan through Square Loans, please know that we will continue to check your eligibility on an ongoing basis. If you’re eligible for a new loan through Square Loans, you’ll be notified directly on your Square Dashboard and via email.

 

I hope this information is helpful. Thank you all for being valued Square sellers!

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Thank you @ecantiques5 for this. I guess I was really hoping for Square to renew the Capital program but alas. Square has left us hang us to dry. The Capital loans was really great. No jumping through hopes like the big banks. 

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@Leeann4  - what kind of biz do you have? Is your city, state open?

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I own a Gourmet Cupcake Bakery outside of Charleston WV. We have managed to stay open during Covid-19 by offering Curbside Pickup and delivery. We normally bake and deliver 57-60 Weddings per year. Due to Covid we lost almost $40,000 just in expected Wedding Revenue for the last three months. While we were able to stay open we were basically paying staff and buying supplies. Had to use savings to cover bills and other expenses. Our Capital was the lifeline we knew was coming and would let me actually BREATHE. Now I feel like a complete failure for counting on it, but after 7 years of great experiences with it, why wouldn't I?

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It sounds like you would qualify if they were doing them. I’ve been counting on it to expand and am VERY frustrated with this. When I called last week they said they had “dramatically scaled back” the capital so they could focus on PPP through the 30th. The 30th has come and gone and NOTHING. And no one is even looking at a case by case basis. I can’t believe Square would do this during Covid. 

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Thank you @Regina_B for your response. I really hope square can find some solutions for businesses like mines very soon. Yes, we are aware square look over everyone's account and if square determines they are eligible we will see the offer in our dash board; however, during this time how do we know square will actually offer any more capital loans? This is a question I wanted clarity with.  

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Square Community Moderator

Hey @HomeHearts,

 

I moved your post to an existing thread where @Regina_B answered this question so you can check our her details here!

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
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I have been offered a ppp small amount. I was wanting to know if i accept it will it affect if square capital should offer me a Capital loan again? Can anyone help with this question?

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Has anyone gotten a capital offer since Covid19 Started. Not a PPP loan I don't want. I would rather the capital loan with transaction repayment

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Nope, I paid off my last Square Capital loan completely on March 9th and have not received any new offers. Successfully completing 2 loan programs prior to this pandemic and still doing about $65k monthly sales during Covid-19 doesn't seem to matter. I think they stopped doing loans completely due to economic uncertainty. 

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@StylebyMalia 

Unfortunately Square Capital with the usual amount of not being upfront, ended the Square Capital Program, without warning, even retracting loan offers on the dashboards of sellers that were algorithm eligible. They yanked the ENTIRE program. Regardless if

You were in good standing

Still processing revenue ( in midst of covid)

New customer/ customer retention

No charge backs/failed debits

Several successful loans in the past

Paid back in full or at a high repayment percentage (80%-100% payed back)

I have been with Square since 2013 and the way they conducted themselves during this experience has ruined my confidence in our business to business relationship.

 

I wish you all the best in moving your business forward. 

 

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@ecantiques5 did you actually received Square ended the Capital program. Or did you read it somewhere. Yeah Square hasn't been upfront with their answers in regards to Capital. I'm very disappointed with them. When I am done with mine, I will be looking into Paypal.

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Now I blame myself for not coming here and reading all this earlier... could have done things way differently the last 6-weeks..... oh well! 

 

At least I have business!

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@StylebyMalia 

Please see the highlighted area.

Square halted their in house Capital Loan program that we all had grown used to as a helpful business tool. They rolled out a sloppy PPP path through SBA late in the game and even reduced amounts aellers would have been eligible through a direct SBA ppp loan through any other path. Sellers were encouraged to apply in duplicate. Which resulted in violations of the PPP rules.

 

The fact that Square ended in house capital loans is sickening seller abandonment in my opinion.

20200513_091737.jpg

 

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I have my $10000 loan paid off 99% and have not been offered another loan yet. Didn't know if they have stopped offers with the Virus going on.

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@edwardsgroupnc 

At a time when vast numbers of Square sellers/ Capital loan recipients even though still producing revenue & algorithm eligible Square in a deceitful post fessed up to what sellers were left to be suspicious of for weeks.

See highlighted area.

20200513_091737.jpg

 

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It is really such a bummer. We are really just hoping that the program will be back up and running soon for those who are still going strong during the pandemic! Good luck to you!

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Has anyone been told by an agent that square is currently not offering new capital loans to anyone? 

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@Mike22fs 

If you look at the replys to this thread I have posted @Regina_B  response that was posted regarding FINAL UPFRONT confirmation that Square Did stop their Original Capital Loan Program. I highlighted the actual black & white verbage that says they are not offering Capital at this time.

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looks like there are no loans at this time

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Is square still offering capital loans?

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No new loans. I am all payed up, But no new loans? I am doing very good, But what is going on?

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