Jack Dorsey’s Square to dole out coronavirus emergency funds
Square Capital, the lending arm of Twitter founder Jack Dorsey’s point-of-sale service Square, announced Monday that it is now an approved lender for small businesses that need emergency funds to survive the coronavirus lockdown.
The company said in a tweet it was approved by the US Treasury and the Small Business Administration “to start rolling out PPP [Paycheck Protection Program] loan applications this week.”
Sellers and new users will be able to go through Square’s dashboard to process and automatically verify their application. The program offers small businesses a fixed rate of 1% on loans, up to 2.5x the amount of average monthly payroll and income, a six-month deferral on payments, and 100% forgiveness for those that meet qualifying requirements.
Small businesses and independent contractors will be able to use the funds to cover payroll costs, employee benefits, mortgage interest payments, rent, utilities and interest on other obligations. Those that use at least 75% of the funds to cover payroll costs will have their loans forgiven.