Re: Did the PPP loan stop me from getting another Square Capital loan offer
SQUARE CAPITAL ended without warning their Celtic Bank Capital loan program sellers had become used to for years. Although this response follows typical Square ambiguous verbage, not one seller has been offered a capital loan since the covid experience began. Does not matter if you had many successful prior loans, does not matter if you still were processing increased volumes during covid, getting new customers.... they ended it and caused great anguish to many of their sellers that were counting on their Ongoing partnership with Square Capital.
Just wanted to chime in and share our experience with Square Capital. Had taken several loans, always paid early and most recent was paid off early and balance at 0 at the moment, of which was paid off really fast, again.
It's my opinion, that the Capital program was not risk averse given the current pandemic and got out while they could. I'd guess that the losses lenders are suffering are staggering.. they just wanted to stop the losses I guess.
At same time, many of our biz's aren't *off* if you will, and I'd guess that many will remember the lack of transparency and clarity during this. I think it'd have been nice to have a message reflecting the apparent lack of new biz for Capital. Is what it is I guess, but many may not take advantage of the money faucet when it's turned back on..
Re: Will i be eligible for another square capital loan even tho i have a PPP loan?
They are not offering capital loans. It would be wonderful if someone from Square would be forthcoming with a timeline of when we can expect capital loans to resume, but so far...generic responses across the board.
I think I might already know the answer to this, but I can't seem to find this specific question in the community and am looking for a more conspicuous answer.
I currently have a Capital Loan which is about 77% paid off. This is my 2nd Capital Loan. Recently (this week), I applied for, was approved, and received the funds for a PPP loan.
With the economy picking up I have been overwhelmed with previous clients and new clients asking for my services again and it would be helpful for additional capital funds to grow.
From what I assume, Capital loans are based on transaction data compiled through my Square location, and the PPP loan processing is managed through Square Capital, but a separate entity from Capital Loan processing. This is what I am trying to find out.
So, the full question is: Does receiving a PPP loan, while nearly paying off a current Capital Loan, have any impact on receiving a new Capital Loan offer, or is the Capital Loan offer completely unrelated and unimpacted by PPP loans.
I have read through all of the Capital Loan and PPP Q/As and FAQs, but haven't found this specific answer.
@Cafelegacy - at this point Square is not providing any capital loans, aka merchant cash advances. They discontinued them at the start of COVID-19 and only recently decided to tell all of us loyal customers. Some of us have had 7, 8 or 9 loans thru them and have been paid off. Many continued to process thru this whole ordeal and even increased sales. We have been left high and dry.
Interested the details of your PPP loan. When did you apply? Do you have employees? Did you do it thru Square?
I didn't hear anything about capital loans being discontinued and I thought I'd read all I could:)
Regarding my PPP loan, I am a freelance writer, and while I don't have employees, I hire several independent contractors each year for illustration, graphic design, admin, transcription, etc. That being said, I am set up as an LLC with myself as a paid employee and intention of hiring part-time employees soon. So, when I applied, I applied as an employer per SBA direction.
I did apply through Square, and received confirmation of application receipt Monday, June 15 at 4:18 PM. It was verified by Square and the bank on the same day at 4:54 PM. It was approved by the SBA at 9:50 AM on June 16, and I had funds in my bank account this morning June 17 by 6:00 AM. The times are based on the emails I received.
The PPP loan offer I accepted was initially for $5,400 at 1% to be paid in 24 months after the forgiveness determination which I think was 8 weeks. However, after I was approved I received an email stating that for loans applied for after June 5, 2020, the payback start date and forgiveness determination were moved to 16 weeks, and instead of 24 months to pay the loan back if not forgiven, it was now 60 months.
Admittedly, this was much faster than expected. Perhaps, it can be attributed to a much smaller amount than most, a drop in applications, or trying to fulfill loans prior to the loan application deadline. Whatever it was, my process was significantly shorter than most people who posted in the seller community.