Square Capital and COVID-19 Relief FAQ
We understand the rapidly evolving COVID-19 situation poses unique challenges for small businesses—we’re here to help. This is why we have delayed the debit for your upcoming minimum payment. We hope this will provide your business with some small relief though these difficult times. If you have questions about what this means, we have prepared some frequently asked questions for you below.
What assistance is Square Capital providing?
If you have a minimum payment due during March 21 through July 19, we will not debit your bank account or increase your repayment rate during this time. You may also refer to the banner in the Capital section of your Square Dashboard for more information.
Delaying debit for minimum payment vs. suspending repayment rate?
We are not suspending your daily repayment rate which is the set percentage of card sales used to repay the loan. Instead, if you have a minimum payment due during March 21 through July 19, we will not debit your bank account or increase your repayment rate during this time.
A minimum payment of 1/18 of your initial loan balance is due every 60 days. For more information, take a look at your minimum payment requirement.
What happens after the relief period?
Starting July 19th, after the relief period has completed—if you have not yet met your minimum payment obligation, you will be debited as usual on your next contractual minimum payment due date.
For example- if your minimum payment is due on 3/28/2020, we will not debit your account on that date since it is between 3/21-7/19. However, on your contractual minimum payment date after next, which would be 7/27/2020—if you have not met the minimum payment amount for that period, we will debit your account. We’ll also continue to send you an email reminder before we debit so you’ll always have a heads up.
Please note that if you have met your upcoming minimum payment obligations, as usual, you will not be debited for any amount.
Does delaying my current minimum payment affect the due dates of my other minimum payments?
No, it will not affect the due dates of your other minimum payments or the due date of the minimum payment from March 21 - July 19. This is a delay of any debits or increased repayment rates for your unmet minimum payment amount. Your remaining minimum payment dates or debits will not be affected or delayed.
Does delaying my minimum payment affect my repayment rate?
No, it does not. If your business is still processing card payments, your repayment rate will still be applied to all card transactions. Unfortunately, we are unable to suspend your repayment rate at this time.
Does delaying my minimum payment debit affect my loan maturity date?
No, delaying your current minimum payment debit does not affect your loan maturity date. You can pay off any remaining minimum payment amount or past due balance through your daily card processing or by making a prepayment through your Square Dashboard.
Can I suspend my repayment rate?
We’re unable to make adjustments to the repayment percentage at this time, however we are continuing to actively look into other ways we can help support you.
Can I get additional funding?
We understand your business is facing extraordinary challenges. We’re working on ways to help as quickly as possible. If your business becomes eligible for a loan through Square Capital, you will see loan offers in your Square Dashboard. If you require additional financial assistance, we recommend taking a look at the list of financial relief programs being rolled out nationwide to support businesses in this time of need.
Can Square Capital provide additional assistance?
We are actively researching solutions to continue to support you and your business during this challenging time. If delaying a debit for any outstanding minimum payment amount for 60 days isn’t enough and your business needs additional assistance, please contact us.