When will Working Capital Loans be eligible for businesses in the state of Virginia again?

[mwillis123]

I've been successfully receiving PayPal Working Capital loans for 3 years now. I just paid off my most recent loan in order to apply for another .. however, PayPal is now stating that these loans are not eligible for businesses in Virginia. Of course this would have been awesome to know before I paid off my loan, but oh well. I called in and was told that apparently Virginia has a passed a law requiring company's to disclose certain information on their website and PayPal hasn't done so. If anyone has any insight on when this will be fixed or if it can be fixed, that'd be awesome. My business really needed that loan.  

[watchguy78]

Same with me.  paid off early to get another as needed some then nope.  Don't hold your bathe.  I have done over 800K in loans with them total. I have been deealing with paypal for more than 20 years and ran 75 million through them in sales.  I can promise you they dont care about customers.  You mean nothing.  They only care about $

[estatefinds4uva]

I am experiencing the same.....have had 3 loans, paid all 3 off early and in record time, worked hard to get this done so that my business could continue to have the working capital.....it has put a major hurt on my business, and have gotten all of my customers to exclusively pay via PayPal so that i can keep those sales numbers up, if it is just a matter that they need to disclose certain things, then why don't they just do it???  

[estatefinds4uva]

I found the "Disclosure" Requirements for Sales-Based Financing for Virginia.....I read it and still don't see where the problem is with Paypals disclosures, as I believe that what the law lists, Paypal indeed DOES disclose.....

Here is the link  Code of Virginia (2022 Updates)

[ANB5]

The same thing happened to me! I paid mine off early, so I could get a new one -- these WC loans are what's been helping keep us afloat. I really needed another loan, and now, I may have to shut down my business. Why can't PayPal just update their site with the information needed to meet the new law? What is the problem?!

[wcuser]

I call into the Working Capital line each Friday to get an update as I have heard they have a staff meeting on Thursdays where new information is shared.  Although they do seem to log my call as an affected party, they don't offer a firm status or timeline.   Early on I heard they were waiting on the state for clarifications and more recently it was suggested it was in the hands of the developers, but no timeline is ever offered.

It's a shame the unintended consequence of VA HB 1027's aggressive deadline (July 1, 2022) resulted in the suspension of this useful financing tool to some of the most loyal PayPal business customers.   Then again, given it is November, sure seems like it's taking longer than it should.

[Parksidemanor55]

Right! I just paid another one off with the intention of getting another. The WC loan has become an excellent tool in my business. I always encourage credit/debit card purchases to keep the volume up and build a strong revenue history. I was shocked when I saw that it was no longer available in my state. I did call this morning to determine the voracity of PP’s intent to add the language and disclosures to the site and process. I was told the usual scripted reply but the rep sounded sincere. I am going to monitor the page for updates but may be forced to move to a different card processing platform. One that offers the same product, like Square. Checking into that this morning. A hassle but, business is business.

[wcuser]

Per the new state legislation found at the link below:

Code of Virginia Code - Chapter 22.1. Sales-Based Financing Providers

Sales-Based Financing Providers are required to register with the State of Virginia for a small fee.  I am not seeing PayPal listed among this list of SALES-BASED FINANCING providers as of December 21, 2022.

Virginia SCC - Regulated Financial Institutions- Verify a License

Which throws into question PayPal's intent and timing.  Perhaps their legal/compliance department is putting the brakes on it as I can't imagine the development side taking this long to implement.   Merely speculation.

[wcuser]

Looks like PayPal finally made the list of SALES-BASED FINANCING providers as of January 25, 2023.

Virginia SCC - Regulated Financial Institutions- Verify a License

I discussed my concerns at length with one of the Working Capital supervisors, especially regarding PayPal's omission from the sales-based financing providers list as of December 22, 2022, which put into question PayPal's intentions and she lodged a formal complaint on my behalf.  Here is PayPal's response.

 

[Parksidemanor55]

Sounds like the same answer as far as I’m concerned. I’ve moved past Paypal and no longer accept any payments via PayPal nor am I processing credit/debit purchases via PayPal. I post this at all our jobs. They will no longer be receiving any revenue from me. I have switched to Square. The situation put a severe hardship on my business.