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

[RadioMcG]

@dmdale0318  wow that is awesome...we paid ours in April 2020. Sales increased huge in March and continued throughout, never paused or closed. Have been steady ever since. And NOTHING! No offers, no explanation. So, congrats! 

[dmdale0318]

Prayers your offer will arrive soon!!!!

[ZHEMIZ2]

be patient guys, with Covid everyone is at risk, we got an offer we accepted back in August, we are at 80% repayment and we just receive another offer that we still dont take, but we might when we get close to pay in full, its a matter of time

[Usmcvet881]

• Covid is nothing but an excuse. Square only helps the big guys. Myself and thousands of other businesses have had multiple loans through capital and paid off every one with increases in sales since and zero offers. 

[stud1od]

It's interesting to see that I haven't been offered a Square loan since round one of PPP despite my company successfully borrowing and repaying a number of loans in prior years. Is anyone getting traditional Square Capital loans at all even if they qualify for the PPP, as well?

[ErinAkey]

For those wondering if they are still doing loans- yes!  We got one in September that was several thousand less, but still nice and were at 75% paid off this past weekend and got another offer that was $1000 more than the last.  

They also did say when i called that they are not halting the capital loans while doing PPP this time which was nice to hear.  

These loans really help us buy new equipment and expand for sure.  

[Usmcvet881]

Well lucky you. Wouldn't brag too much though. There's thousands of us that square has forgotten about and offering nothing with excellent payback history.

[ErinAkey]

Not bragging at all.  Answering the question asked as to if loans are still being done.  We too are a very small biz and these help us tremendously.  I pray everyone who needs one gets one as well.  

[Mkober]

Don't know if this is typical, but I've had 2 loans in the past with both being paid early. My last loan was paid back in October of 2019, and I've yet to receive another offer. I considered the covid delay, but now I'm thinking it mist be personal and I must have done something wrong. LOL 

Has anyone else had to wait this long? My business has seen strong growth, but it sure could use some help pushing ahead and it seems like it should certainly qualify if it did in the past

[Shagari_j]

I felt frustrated like a lot of you as well as it was slow to offer me a new loan with outstanding payback history.  But I have since received 5 new  capital loans since March of 2020

[Usmcvet881]

100% the same thing has been going on with my company. I've had 5 capital loans. All were payed off fast and on time with 100% payment history and I haven't been offered a loan in a very long time. It makes zero sense. The only thing I've came up with is they are only giving loans to businesses who are doing a ton of revenue. Small businesses are getting screwed. On top of this, the 2nd draw PPP is an absolute disaster. My company is operating great but I'm one of the lucky ones I guess. I'll always remember square offering zero help during these times. Thanks square.

[Bella2019]

Has anyone received an offer May 2021, are they still offering capital loans?

[daviruchu213]

I did this month, only for $600. 

[DJSQUARE]

I did this month $99,976

[bsa77]

We have decided to hang in there with square as we got an offer in February/March. We will see if we stay if we get another soon. We are about paid off. It is the perks the really help out and why we decided to use square over other companies. I hope they realize that! 

[Mkober]

My business has grown from $30,000 per month average to over $60,000 per month average with 80% return customer rate and many new customers. I had a $76,000 month in April. I have not received a loan offer since October of 2019. I have no idea what it takes to get an offer, but I certainly should qualify. I called in February and was told it's according to sales algorithms and random choice. I'm getting frustrated. There has to be an issue that I'm unaware of, but nobody has an answer

[JamesC]

Hi @Mkober, 

Thank you for reaching out! 

It’s important to everyone that lending through Square Banking is done responsibly. We know your business is important and we don’t take that lightly. We want you to be successful and we support your future growth.

To help ensure you get an offer that’s just right for your business, Square Banking reviews accounts on an ongoing basis. There is no specific information we can share at this time because eligibility is based on a unique formula, but keep in mind that we evaluate accounts as a whole. The formula balances different factors of your business that may positively and negatively affect your business’s eligibility for an offer.

Please know that Square Banking is committed to helping your business succeed, but we understand that you may need to seek financing outside of Square Banking for immediate needs.

If you are considering other options for a business loan, please review our 4 Things to Consider When Evaluating a Loan Offer in our Town Square Blog.

We will continue to monitor your account and notify you if your business becomes eligible for a Square Loan offer. 

If you have any questions, please feel free to contact us.

[Cehardt6280]

I did for 3k which is MUCH MUCH lower than normal. My assumption is they are lowering due to the PPP loans 

[JamesC]

Hi @Cehardt6280, 

We appreciate you taking the time to reach out.

When the decision was made to reopen our loan program a few months ago, our goal was to responsibly provide the Square community with access to funding while also balancing the risk of future business interruptions due to Covid. As a result, our program reopened but offer sizes were reduced.

We understand loan repayment may cause financial hardship for some businesses during times of economic uncertainty, and we never want to put any business in a potentially risky financial position.

Based on this smaller offer and your current sales, we believe your business can safely support this amount and will be able to repay it in a shorter time frame than your previous loan offers. And since we believe your business can pay this loan back in a shorter time frame, you could potentially qualify for additional funding sooner as you come close to repaying your loan in full, as long as your business remains strong.

We’ll continue to monitor economic conditions, and once we see steady and stable improvement, offer terms will be updated and changes will be communicated to you. Thank you for your patience.

If you have any questions, please feel free to contact us.

[dunritelawnmain]

I'm experiencing the same problem I've had 3 loans paid off in full in 2021 they denied me for a failed debit from 2020 December which would have been a 4th loan .. since September my loan of 1500 was paid off I havent recieved a offer yet but my business is doing double the numbers since last year 

[Myc]

So first off with Square be mindful that they will send you an offer , but secondly as some one who has been denied for a loan I understand how important they can be for your business ......But in being denied I was denied for a loan of 5600 and for the next few months with the loan paid off  I enjoyed not only making more of the money from my business ,what it did for me was get me an offer of 8500 after about 4 months ....So my advice just wait on square because your time without the loan helps to create a chance at a bigger loan in the near future