Square, one of the two companies owned by Jack Dorsey, now joins PayPal and Intuit following the US Treasury approval. The Bitcoin friendly firm is now one of the many Fintech companies that can distribute loans to small businesses.
Sellers Need Financial support now than Never: Reses, Capital Lead of Square
Jacqueline Reses, the Capital Lead at Square, acknowledged the approval and took to Twitter saying that sellers needed support now more than ever.
“Square Capital has received U.S. Treasury and SBA approval to be a PPP lender, and we will start rolling out our PPP loan applications this week. We continue to work with our partner Celtic Bank as they have existing expertise as a leading SBA lender.”
“We know sellers need financial support now more than ever, and we’re committed to making funding accessible to as many small businesses as possible.”
1/4 Square Capital has received U.S. Treasury and SBA approval to be a PPP lender, and we will start rolling out our PPP loan applications this week. We continue to work with our partner Celtic Bank as they have existing expertise as a leading SBA lender.
— Jackie Reses (@jackiereses) April 13, 2020
Square Joins PayPal and Intuit
Square is behind CashApp, an application that allows investors to easily buy and sell Bitcoin from mobile phones. This approval highlights how crypto supporting entrepreneurs are helping out the government in steadying the ship after the destabilizing effect of COVID-19.
Coronavirus has rendered many jobless and some firms have announced job cuts. By the end of Q2 2020, it is expected that most will suffer losses and stock prices will likely tank because of unexpectedly low revenue.
Square will now join forces with others and take part in the United States interventionist plan, dubbed the Emergency Paycheck Protection Program. It received approval from the Small Business Administration (SBA) as a Public Private Partnership (PPP) lender and will partner with Celtic bank.
The first loan applications will be accepted beginning this week but notifications will be sent out through Square’s dashboard. Priority will be given to employers whose data will be verified automatically.
“We will notify sellers when their application is available via Square Dashboard, starting with employers whose application data we can verify automatically. We expect to expand access to more small businesses soon.”
$350 billion to be Lent, Not every business Qualifies
Leading Fintech firms will distribute the first $350 billion of the $2.3 trillion stimulus plan approved by the US congress. Fintech companies, TechCrunch reports, have been lobbying to be part of the SBA-approved lenders.
Responding, the SBA published a form allowing Fintech companies to apply for approval.
The $350 billion will be lent out to small businesses, a majority of whom bore the brunt of the supply chain disrupting coronavirus.
Still, not everyone will qualify. As laid out by one disgruntled business owner, those who will access this relief are firms running limited liability companies and corporations with payrolls.
“Well. It is, and it isn’t. People that qualify are those running Corps or LLC. Have to have payroll. Most of us running as a DBA are screwed for any of these loans/grants. I applaud square for this. Some of us still getting the shaft! Guess we are too small.”
In 2019, Square, through CashApp, earned $8 million from Bitcoin related revenue.