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Funder spotlights

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Funder spotlight— inside the shop

Dorsey says Square Loans cohorts have lost under 4% through every cycle

Block's Q2 shareholder letter highlights credit performance at Square Loans, the online small business lender that has led originations on the back of its POS base.

Time in Business Newsroom
Staff
August 6, 2026
1 min read · Aug 6
August 6, 2026 · 1 min read
Filed under square loans · block · small business lending
  1. 1Block CEO Jack Dorsey says Square Loans cohorts have posted loss rates under 4% in every cycle.
  2. 2Square Loans has led online small business lenders in originations for some time.
  3. 3Some loans are held on balance sheet and others sold to third-party investors.

Block says Square Loans cohorts have kept loss rates under 4% across every credit cycle the company has seen. CEO Jack Dorsey made the claim in the Q2 shareholder letter, describing Square Loans as underwritten on data that banks cannot see and aimed at sellers that banks will not serve.

Market position

Square Loans has led online small business lenders in originations for some time. Its volume is helped mainly by its large captive point-of-sale ecosystem, and the loan performance Dorsey cites reinforces that standing.

Block holds some of the loans on its balance sheet and sells others to third-party investors.

Source reporting: deBanked.

By the numbers
loss rates on Square Loans cohorts through every cycle, per Block
<4%
square loansblocksmall business lendingearningsdata
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