Loans through Square Capital
What is Square Capital?
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.
What is the repayment length of my loan?
Your loan must be fully repaid within 18 months.
Is there a minimum payment?
Yes, you’re required to pay at least 1/18 of your initial loan balance every 60 days so that you make consistent repayment progress.
What is my interest rate?
There are no ongoing interest charges. Instead, the total borrowing cost of your loan is just one fixed fee. Additionally, there are no application, prepayment, or late fees.
When will I receive the funds?
Upon approval, funds will be deposited as soon as the next business day.
Can I cancel my loan?
Yes. You may cancel it before a decision on your loan has been made or within two business days after funds have been deposited. If you’d like to cancel your loan, check out Navigating your Square Capital Dashboard to get started.
Can I change my loan amount after funds have been deposited?
Once you have selected an offer and funds have been deposited, 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 within two business days. Please note, after cancelling your loan, a subsequent offer is not guaranteed.
Keep in mind, even if you cancel your current plan, as long as you have a Square account, your account will continue to be automatically re-evaluated for eligibility.
Why do you need my EIN?
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.
Who is a Business Manager?
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.
Who is a Beneficial Owner?
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 Owner. Square Capital won’t contact any listed Beneficial Owners or ask them to review your loan request.
Why are you asking for additional ownership information?
We’re required by law to collect additional identifying information regarding the control and ownership of businesses that apply for loans through Square Capital.
Do I have to inform a Business Manager or Beneficial Owner about my loan application?
No, a Business Manager and/or Beneficial Owner doesn’t need to review or sign your loan request.