Square Loans and COVID-19

[Laura123]

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.

As you may have heard, eligibility for loans through Square 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.

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 Loans 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 Loans loans can be found here.

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.

[planttherapy]

I did not, I wonder why they are being selective with this.

[Jenjer20]

We understand COVID-19 poses unique challenges for small businesses like yours—we’re here to help.

If you need extra time to make your next minimum loan payment through Square Capital, we can extend the due date of this minimum payment by up to 30 days. Contact us here if you would like to utilize this option or need other assistance with your loan.

Please note, these extensions only apply to your minimum payments. Your loan will still need to be repaid by the original maturity date in your loan agreement. Also, we’re unable to change the percent of daily card sales used to repay your loan at this time.

If you need additional funding, rest assured we will notify you through email and your Square Dashboard if your business becomes eligible for a loan offer. If you don’t see an offer in your Square Dashboard, your business is not eligible at this time.

[Jenjer20]

My previous post is a copy of the email I got from square capital, yesterday. I don't really understand it, because I. The beginning they say if we need more time to repay , like 30 days, then it seems to contradict, and says they can't stop anything ?? Someone please explain this? 

[Regina_B]

Hi @Jenjer20, thank you so much for your post. I hope you are staying safe. I completely understand that this is a challenging time, especially since business may be slower as more and more people have their daily lives disrupted.

We're unable to pause or make adjustments to the repayment percentage that repays your loan through daily sales. However, we are looking at various ways to provide relief at this point in time. A minimum payment of 1/18 of your initial loan balance is due every 60 days. As stated in the email you received, we are able to delay any upcoming minimum payment debit for 30 days. If any future minimum payment becomes a concern for your business in the future, please reach out and let us know.

Again, I understand this is a difficult time. Thank you again for your question and please stay safe.

[cdmull]

Same thing happened to me.  I've been closed since March 18th and I had one online sale yesterday I ran and they took out the 16.5% loan repayment I had previously signed up to defer minimum payments and I understood they would not be taking out the payment repayment part until may 20th period so my $225 only of $187 was put into my bank account. they got theirs

[Teatalk18]

[newsandinfo]

I believe a question on the mind of many Square customers is whether and when Square Capital is going to provide clients with new loans during the COVID-19 crisis.  Are you?

[Regina_B]

Hi @newsandinfo, thank you for your question! We know this is a challenging time, and I want to let you know that we are actively looking into solutions to continue to support you and your business. While we do not have a specific timeframe for when another loan offer may be available, if your business becomes eligible again, you will see loan offers in your Square Dashboard.

[ecantiques5]

@newsandinfo 

Have you received anything by way of an offer from Square Capital?? Just looking for an update to this thread. 

Thanks in advance😊

[newsandinfo]

No - and we're not going to get any offers from them in the foreseeable future. Their lending bank has cut off loans at present - they're not saying this to us, but that's the situation. 

[QRodson]

We recently received a Square Capitol. I know that we are required to make a specific amount of sales to payback a portion every 90 days. 

With businesses closing (mine has now been closed for 3 weeks) how can we go about arranging an agreement since I will not be making any sales this month and/or potentially next month. 

Is there a way to work this out? Will I still be required to meet the minimum payment requirement. 

Are you working to waive those requirements ? 

[rzrshop]

it would be nice if they would give EVERYONE some  kind of capital loan to help get us through

[Taewaxes]

So basically what I’m gathering after reading the disclaimer from square and the responses is that square will remove a loan in a crisis despite the fact that their sellers may genuinely need them. @Regina_B Regina says loans offers are temporary however there are times when we have offers for MONTHS but suddenly EVERYONE has their offer removed. Way to show support to the community. I’m always telling people how great Square is but it looks like when we as sellers need them most they are unavailable. Truly sad. 

[Ecsmw]

We paid off a loan early, additional $2700, earlier this week thinking a loan would be available. Our business does not have to struggle and this loan would have helped. It would have helped even more to know that they changed something and no loan would be available. I would have had an additional $2700 this week. Thanks square, will take this into consideration when changing processing companies.

[ecantiques5]

@Taewaxes 

Its not just sad....its disgusting how Square has left their sellers OUT. Out of eligible worthy capital, out of the SBAs PPP.

Have you received anything by way of an offer from Square Capital?? Just looking for an update to this thread. 

Thanks in advance😊

[Taewaxes]

Hi @ecantiques5 . Nope I haven’t gotten an offers or assistance from square. Looking for a new processor as we speak. 

[cdmull]

I along with many other small businesses have not received the help we need for square. Unfortunately many of us have been forced to reevaluate how we will process payments as we begin to reopen. I have already told my clients I will no longer be using square. One customer yesterday said her card was compromised 4 times last year and the common denominator was Square. I recently found out you can request payment via FB messenger and it goes straight to your PayPal account no matter how the customer pays. Even if the customer doesn't have PayPal they can still pay with their credit card and NO FEES!! Also no transfer of possible virus...I touch my phone, customer touches their phone. No contact. Just FYI....IM WALKING AWAY FROM SQUARE

[ecantiques5]

@cdmull 

Thank you so much for your reply. I am very sorry that we had to experience this as a collective group of sellers. We have been online selling since 1999. Those were the early days to say the least and we were with Paypal from 1999 to 2013 when we moved to Square. I guess that in order to protect my business goals it is time to move back. Thanks for the update on how their contactless payment works😊

I wish you all the best as we small businesses work to defeat the effects this virus has had on our business.

[cdmull]

Yes. I was using PayPal since 2009. I switched to Square when I had multiple people selling in multiple places the same day...ie pop-ups and in store. I found the payment on messenger by accident. PayPal request the customer and they pay from their phone. NO FEES

[ecantiques5]

@Taewaxes 

Thank you very much for responding. Very disturbing that Square does not appear to care. I wish you all the best in getting back to business soon😊 Let's defeat the Covid and get our business back❣

[Rainman574]

My sales have only improved. I paid of a 5k loan that I got dec. 26 in 2 months. They have offered me 3 times the amount and my sales havnt decreased the offer was up for a month until yesterday. And notice they took away the bar showing where you could improve to qualify. They are turning their backs on the small businesses knowing that we might fail. Disappointing