Tldr:
- Square and Homegrown have launched a $24 million pilot program offering up to $1 million to qualified sellers in multiple locations.
- Repayments range between 1% and 6% of monthly revenue, reducing cash flow pressure for expanding operators.
- Financing is non-dilutive and contains no personal guarantees, protecting the sellers’ ownership and financial position.
- Eligible sellers include restaurants, cafes, fitness studios, and beauty and wellness brands with two or more locations.
square Announce A new financing option called Expansion Capital, powered by Homegrown, targets qualified sellers in multiple locations.
The pilot program is launching with $24 million in committed capital, offering amounts up to $1 million with terms of up to four years.
Flexible payments based on monthly revenue, with no personal guarantees or equity dilution. The program is designed around the needs of certified operators who are ready to open a next location, acquire a new location, or finance a remodel.
A financing pathway designed for growth-stage operators
The program collects yard Homegrown’s existing vendor relationships and underwriting experience are in an expansion phase.
This combination is designed to give qualified sellers a seamless financing path within the Square ecosystem. Instead of turning to third-party lenders, qualified sellers can access capital without disrupting their existing business tools.
Financing payments can range between 1% and 6% of monthly revenue, providing a buffer during slower periods of business.
This structure is designed to reduce cash flow pressure for operators whose revenues may change by season or location. The repayment design is different from traditional fixed-schedule loan products in the market.
The capital is non-dilutive, meaning operators do not need to sell their shares to obtain financing. This is a key distinction from venture-backed financing methods, which often require business owners to give up ownership stakes. For sellers who have built their businesses independently, this model helps them maintain complete control.
Andrea Raj, Head of Product at Square Banking, spoke about what this partnership means for sellers. “At Square, we’ve spent more than a decade making sure local business owners have access to capital on fair terms.” Raj said.
“Partnering with Homegrown to provide sellers with new product Capital option It’s about extending that same commitment to a new stage of growth: the moment when the seller is ready to move forward.
Raj noted that the partnership expands Square’s long-standing commitment to local business owners, as it now reaches sellers who have proven their concept and are ready to scale.
Who is eligible and what the program covers
The program is designed for certified Square operators with two or more locations, including cafes, fitness studios, restaurants, beauty and wellness brands, and neighborhood retailers.
These are companies that have already proven themselves Market demand They are looking to expand. The funding is not aimed at startups or first-time operators.
Eligible sellers can use the capital to finance the next location, acquisition, or remodel, giving operators flexibility in how they deploy financing.
This range of use cases makes the software applicable to different types of expansion strategies. Sellers are not limited to opening a completely new location.
Homegrown CEO and Founder Michael Davis spoke directly about how big this collaboration represents. “Much of America’s small business economy runs on Square.” Davis said.
“This partnership brings a new type of expansion capital to traditional entrepreneurs across the country, and this is a meaningful moment for both teams.” His observations indicate the broader scope this program can achieve once it moves beyond the pilot phase.
The program eliminates burdens such as personal guarantees and large payments, providing payment flexibility directly tied to how the business performs each month.
For multi-site operators who manage tight profit margins across multiple locations, this structure reduces the financial risk of taking on expansion debt during uncertain periods.
