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

[585Print]

I also received a very small loan in September.  I decided to accept it and pay it off to see if I would get a better offer.  I paid it back 100% in October and still haven't received another offer.  My sales have been great.  I have a good mix of return and new customers.  I'm not sure why I haven't received a new offer.

[drsarahe]

I'm in the same boat.  92% paid almost 7 months ahead of schedule and nothing.  I emailed them when it was at 85% (my last one I received the offer and I was only at 63% paid off) and was told I didn't qualify yet with no information at all.  I am on my 6th loan with Square - all paid ahead of schedule.  We've been with Square for a few years, but have utilized them heavily for the last 2 1/2.  Daily sales only dropped back in May. We are at the point that we really need a loan right now but I'm going to have to just look elsewhere I guess.  Just hoping that we will see something soon.

[thelilypad]

That is exactly where I am at, I have began to add paypal on my website and have done really well and just met the min annual in sales within 8 months and plan to request capital through them possibly within next couple weeks. I still am using square via my site but this is really disappointing that I feel have been forced to look for other avenues being no loan offers in the last 10 months

[585Print]

Let us know if you get PayPal capital loan.

[Alyssalauren]

Are loans still being offered? I usually get a new offer when I past a certain percentage and have not received anything. This is based of my past 5 loans.

[Sheelah]

I finally received an offer at 98-99% paid off. I've had many loans, and always offered much sooner. This offer was for 1/5th of the previous loan. Always paid back early, and no loss in sales.

[Myc]

You shouldn't be mad or upset this is proof that they are ready and willing to lend capital the thing is they are basically starting over making sure markets are stabilized so they can remember the pandemic effected everyone at the same time longevity I faith and you should too

[thelilypad]

I have had two previous capital loans and both paid promptly, since my sales are increased, why has it been months since an offer made? Due to pandemic is Capital loans frozen ?

[Decillis20]

I've had a good record getting the capital loans and getting them paid in a timely fashion. My most recent has been paid off for a few months now... And no offer for another, why is that.? A square loan was much more than my first round of PPP..

[Magik5tattoo]

Hey, I’m on my 7th capital loan and I’ve repaid back 80%, typically this is when I’ve received new offers. I’m curious if anyone’s in a similar situation and if they have received a new offer or has the capital

portion of square been paused do to COVID? Thanks! Best of luck. 

[ryanwanner]

Hello @Magik5tattoo 

I think Capital is back up and running, but they are being a LOT more careful when it comes to offering new/reupped loans. This isn't exclusive to Square; I've been hearing reports of many banks just not willing to help with loans due to everything going on.

As the new round of PPP gets solidified, I wouldn't be surprised if Capital ends up holding off on new loans again, but that's just an outsider's guess.

Hang in there!!

[585Print]

I received a small loan back in September and paid it off in October.  My sales have been great and I was hoping for a larger loan after paying off the small one.  Now randomly after 3 months I received another loan about twice as much as the September one.  I used to get new offers at 75% paid until covid struck.  I'm not sure how they're doing it now, but I have received two loans "post covid".

[lacey2901]

It’s great that some businesses have been getting loan offers. I haven’t received anything since paying off my last loan early in April.. I recently started  processing with clover though. Got tired of the same rhetoric about qualifications.

[brown17]

 I have stopped processing with square until my questions along with a lot of other people are answered.    I NEVER shut down during covid my sales were up and consistent throughout my loan was 100% paid off and as I stopped using in November, I had yet received another loan offer.  And no I have no charge backs etc to stop me from getting invite.    Square needs to step up and explain individually why people are not getting offers when clearly they meet all criteria.   The generic response is getting old. 

[thelilypad]

Same I have began using PayPal and plan on requesting a capital loan in upcoming weeks. I have asked Square numerous times and I am simply tired of "covid" excuse

[Jamessc2019]

Hello. I just read your post. Can you asked square capital for a loan,

[Gunsmith12]

Is Square still offering capital loans?

[Cameron_]

Hi @Gunsmith12, 

Thank you for your question. 

We thank you for your patience during these difficult times. We understand the challenges you have faced and are proud to partner with a business as resilient and flexible as yours.

COVID-19 definitely forced us to take a step back and recognize how this virus changed how our sellers do business. New signals and criteria are consistently incorporated into our lending models to ensure we can best serve you. Eligibility and offer sizing for loans through Square Capital is based on a variety of factors related to your Square account, including payment processing volume, account history, and payment frequency. More details on eligibility and offer sizing for Square Capital loans can be found here.

While we do not have a specific timeframe for when another loan offer may be available, the Square Capital program will continue to automatically review your account for eligibility. We understand that not being immediately eligible can be frustrating, but we are unable to override the automatic review process with a manual review.

If you have any questions, please contact us. 

Thank you,

[Usmcvet881]

Only if your doing over a million in annual revenue

[Storks914]

Just curious if the Square Capital program will be paused again as Square focuses on PPP? I hope not, but need to know so I know how to run my business. Any clear, real response would be greatly appreciated. (Not the pretyped script)

[dmdale0318]

I paid off my 6th capital loan back in May of 2020. I never shut down and continued to have daily sales.  Had pretty much all but given up hope that another offer would be extended..when to my surprise there was an offer in my inbox today. Granted it was for 1/2 of my previous loan offers..but nonetheless was there.

Fingers crossed it gets approved since the invitation was extended.

Best wishes for anyone hoping for an offer to come their way. I know how horrible it is to wait...with no clear answers:(