Why was I denied for my Square Loan?

[5blend_CBD]

In February of this year, I was sent my 6th Square loan application (I have now paid off 5 prior loans in full). I completed the required information and submitted it. The next business day, I got a follow up letter asking a couple questions, one of them being "Do you promise not to sell Kratom products" to which I promised and submitted that letter. The very next day, I received a notice of denial stating I had violated Squares Terms of Service. I was completely baffled as I didn't know what I had done- so I called customer service to find out, and was told it was because I sold Kratom.

I have NEVER sold Kratom in my brick and mortar store, nor on my Square website. The only thing i could think of was that when I cancelled my GoDaddy website and migrated it over to the Square platform in 2023, I had a category set up for Kratom- but never sold any, nor had any products listed; just an empty category. I had though about carrying it at one point early on, but never followed through.

I have called customer service, chatted online with agents and emailed with the loan staff- and nobody can assist me, i cannot challenge the decision on something I never did nor can I get them to remove the "Needs Work" next to the eligibility factor that says Prior Loan Applications. I am processing more transaction, making higher sales and have no complaints/ refunds/ chargebacks on my eligibility factors. I was denied a loan simply based on the fact there was a category created 2 years ago and I NEVER made a sale nor even carried the product. And the thing that sucks is even though I'm a CBD store and totally federally compliant and totally compliant with Square- they would deny my business another loan based on the fact of having a category there's that's never been used. I have always remained compliant with Squares wishes on the products I am able to sell. If they have sent me a letter asking me to stop selling a product for whatever their reason is, I do immediately and without question. And now I'm going through this for a product that is still Federally legal and one I was unaware of Squares stance on. Had they sent me a letter stating "Hey, we see you have this category on your website you've never used but we need it removed anyways"- I would have done so in a heartbeat.

Is there anyone I can escalate this to to at least have the "Needs Work" taken off my eligibility factors so I can at least be back in for a future loan invitation? My business is seriously suffering not having that extra capital to build my stores stock level and maintain sales. I cannot believe they denied me for a loan for something I've never done- and if it came down to me having a category there I've never even used- message me and ask me to delete it. They can see I've never sold this product in my store, they can see I've never sold this product on my Square website and they can see when that category was made on my website and never used. This has been such a horrible experience and I fell like Square doesn't care about me or my business. 

Can someone please point me in the direction of challenging this decision or at least someone that can change the "Needs Work" on my eligibility so I can be offered another loan? I don't want to have to close down my business over something Square got wrong and I cant fix. I'm just so hurt and frustrated through this process. Thank you- 5blend_CBD

[Twpchair]

Have you deleted it? If not, I would do so asap. Let’s tag a couple of Mods and maybe they can reach out via a email.  @Abby_M @marielmt any info you can find? If not, how long is the average hold time? Thank you so much for your amazing job. 👀👀👀🫵🫵😃

[5blend_CBD]

That category was deleted within minutes after I spoke with customer service. I've told them repeatedly- they can see if product has been listed. They can see sales online and in my brick and mortar. Usually I get a letter stating what cannot be sold as it becomes available and those items are pulled and gotten rid of within minutes of getting emails. I've always stayed compliant, if they thought something, they sent an email for.me.to.promise not to sell it and I agreed to it and sent it right back. I've never done anything to violate the Square terms of service. 

[marielmt]

Hi @5blend_CBD!

We appreciate you letting us know about your situation.

I can see that an escalation manager has already followed up with you via email. 

We appreciate your interest in Square Loans. Please note that being declined for a Square loan in the past may impact your eligibility. Keep in mind, loan offers are also based on a variety of other factors including, but not limited to, your current payment processing volume, your customer mix, and your Square account history.

We do not have a specific timeframe for when another loan offer may be available. If your status changes, you’ll get an invitation email and be notified directly on your Square Dashboard.

If you have any other questions, please feel free to contact us directly!

[5blend_CBD]

I truly appreciate the response. With that being said, respectfully- I have sent out contact requests at least 5 times since February and nobody seems to understand where I am coming from, the source of my annoyance or any kind of answer to help me get past this wrong I feel I was given.

Kratom is Federally legal and legal in the State of Arizona where my brick and mortar and Square online store are home based. In 3 years being in business, I never assumed this product would be an item Square would not cover as I am a CBD store and I had to file a whole bunch of paperwork to be approved by Square to sell on their platform. 

If this was such a big deal, then why was I never contacted and asked to do a stop sale on this item? I have had other items and as soon as I receive the email from Square- I pull said items for stop selling and I am 100% compliant within minutes. I received a message during submitting another loan application asking if I promise not to sell, which I did promise and was immediately denied. I have NEVER had Kratom in my store, loaded onto my online store nor have I EVER processed a payment for said item. So, if I have never carried or had for sale any of these products- why did nobody message and say "Hey, you have this category on your online store that can't be there. Even though there are no items for sale there, we still need it deleted"- I stead of automatically denying me and putting my business into dire straits for funding. I have been a faithful customer and have paid all my loans off, equipment off and all my fees are paid without a negative word from me. 

I have been compliant with all business so have done through Square and have ALWAYS adhered to their terms of service, yet I am still.ounished for something I never did. 

Now, past this- I have reached out via any source I can find to find someone that can take the "Needs Work" off my eligibility page next to "Prior Loans". Everything else on my eligibility page is 100% good to go, except for this one item that has been sitting there for over 2 months now. I feel I was unfairly punished for something I never did and I feel I'm unfairly being punished for absolutely nothing past that. My business is suffering and I may end up having to close its doors after 3 years of my blood, sweat and tears trying to make it a success. This is co.pmete unfair and is beginning to feel like a bullying situation. Nobody seems to care about the one store small business who tries so hard every day to be compliant and a good customer. I don't know what else to do here and I don't know who else to reach out to to get this taken care of. I have never been punished for being compliant for what's been asked of me as a business owner.