Square Capital provides access to funds to grow your business, with no hidden fees or lengthy applications to fill out. Upon approval, funds are deposited as soon as the next business day — so you can invest in your business immediately to increase inventory, purchase equipment, hire employees, and more. All loans through Square Capital are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.
Yes, you’re required to pay at least 1/18 of your initial loan balance every 60 days, in order for you to make consistent repayment progress. For most Square Capital merchants, regular processing volume will cover the minimum payment.
Note: If you just make the minimum payment, you will only pay down half your total owed balance of your loan. You will owe the remaining balance upon the maturity date of your loan, and may be debited for that amount.
There are no ongoing interest charges. Instead, you will pay one fixed loan fee to borrow the loan. The loan fee is the difference between the total owed amount and the initial loan amount. The loan fee will never change, regardless of how quickly or slowly the loan is repaid. Additionally, there are no application, prepayment, or late fees.
Upon approval, funds will be deposited as soon as the next business day.
However, please know that the time that it takes for those funds to be available to you will depend on your bank’s processing speed. It can take them up to three business days to process this deposit. For more information about your bank’s processing speed, please contact your bank.
Once you have selected an offer, we’re unable to change the loan amount. If you’d like to cancel your loan after it has been funded, you can do so before a decision is made on your application or within two business days of funding. Please note, if you cancel your loan, a subsequent offer is not guaranteed.
You are not able to adjust your repayment rate after you apply for your offer. The repayment rate is tied directly to your loan offer size and is based on a number of factors, including your business’s history with Square, as well as payment processing volume.
The Employer Identification Number (EIN) is a unique nine digit number assigned to your business by the IRS. Square Capital and Celtic Bank use your EIN, ITIN, or Tax ID to verify your business in order to process your request for a loan through Square Capital. If you operate as a sole proprietor, you will enter your SSN.
A Business Manager is someone who has significant responsibility to control, manage, or direct the business applying for the loan, including but not limited to, a President, Chief Executive Officer, or other senior manager.
If you’re not a Business Manager, you’re required to submit additional identifying information on behalf of the Business Manager, as well as your business role or title.
A Beneficial Owner is someone who directly or indirectly owns 25% or more of the business applying for the loan. For example, Bob’s Donut Shop is owned 50% by Bob and 50% by Tasty Donuts, LLC. Tasty Donuts, LLC is owned 50% by Joe and 50% by Mary, both individuals. So, Joe and Mary indirectly each own 25% of Bob’s Donut Shop and would be listed as Beneficial Owners. Bob directly owns 50% of Bob’s Donut Shop and would be listed as another Beneficial Owner.
If you’re not a Beneficial Owner, you’re required to submit additional identifying information on behalf of the Beneficial Owners. Square Capital won’t contact any listed Beneficial Owners or ask them to review your request for a loan.
We do not require collateral for loan amounts of $75,000 or less. For loans amounts over $75,000, we take a security interest in your business assets and file a UCC statement with the Secretary of State where your business is organized.
A UCC-1 filing is a publicly available record that provides notice of a security interest in certain property of a debtor. UCC statements are typically filed with the Secretary of State where a business debtor is organized. UCC statements can be filed for several reasons. For example, UCC statements are sometimes filed when a lender makes a secured loan to a business.
Institutions will sometimes use a third-party to file, track, and maintain lien positions as the registered agent of the institution. Corporation Services Company is a common third-party representative. If you are unsure of what institution the third party is acting on behalf of, the best practice is to reach out directly to the third party.