Why are working capital loans no longer available in Nevada?

[NASDA2016]

Why are working capital and small business loans no longer available for Nevada based businesses?  Previously, PayPal load products have been instrumental in helping us grow and it's exceedingly challenging not to have this fantastic program available any longer in the state.

[ryannagy]

Did you get this message? "PayPal Working Capital is currently unavailable to businesses located in your state or territory." I have not been able to find any other information on it. 

[drprez]

Is no longer available in Nevada, because in June 2023 the governor signed new legislation into act which affects short-term lenders, mainly aimed towards payday loan companies in Las Vegas in the casino industry. Because working capital is a considered a short term loan, therefore affect the working capital loans.. the new legislation says that they cannot lend more than 25% of the borrowers income, and then given time for that pay period which is what it makes too hybrid of a calculation to consider. Contact your state senator in Nevada to get them to modify men this legislation, specifically for payday checks from jobs not necessarily working capital loans for businesses.

[RebelsWireless]

I sent the following message to the Governor. If you are a Nevadan, Please feel free to share: Link is at the bottom

Subject: Request for Reevaluation of Legislation Impacting Small Businesses Using Paypal Working Capital

Dear Governor Lombardo,

I hope this letter finds you well. My name is (your name    ), and I am a small business owner based in Las Vegas. I am writing to bring to your attention a matter of significant concern that affects numerous small businesses in our community.

https://gov.nv.gov/Forms/Share/

I recently became aware of the legislation passed regarding short-term lenders, particularly those associated with payday loan companies in the casino industry. While I understand the intent behind this legislation, it has inadvertently impacted a vast number of small businesses that rely on alternative financial solutions such as Paypal Working Capital.

As you may be aware, Paypal Working Capital is a vital resource for businesses like mine, providing essential support for managing cash flow challenges. Many entrepreneurs in our community, including myself, depend on this program to navigate the financial complexities of running a small business.

I respectfully request that you consider revisiting and reassessing the implications of this legislation on programs like Paypal Working Capital. It is crucial to recognize that these alternative financial solutions play a pivotal role in sustaining the economic well-being of small businesses, contributing to the overall prosperity of our community.

I understand the importance of regulations to ensure the responsible operation of financial services, but I believe there may be an unintended consequence affecting legitimate businesses like mine. A second look at the legislation in relation to programs like Paypal Working Capital could potentially mitigate any adverse effects on small businesses while still achieving the intended regulatory goals.

I appreciate your dedication to the well-being of our state and its residents, and I am hopeful that you will consider the impact on small businesses like mine. Your support in reevaluating this legislation would be instrumental in preserving the livelihoods of many hard working entrepreneurs in our community.

Thank you for your time and consideration. I look forward to the possibility of a positive resolution that safeguards the interests of small businesses in Nevada.

Sincerely,

[drprez]

• The governor has nothing zero none whatsoever to do with this you’re wasting your time sending anything to the governor they have no effect or control over this. This was done by the Nevada legislature, which means once every other year from March till June. You have to wait until the next legislative session which is in 2025.. However, PayPal is still lending to working capital in Nevada. It’s just a new program. Clearly you’re not getting messages from it. It’s only for those who qualify but everybody who is getting working capital before in Nevada still can get it.. it is a nonprofit organization, that PayPal uses. And it is through this arm of their lending institution that they are able to provide Loans in Nevada. You would see this if you went onto the PayPal working cap site under loan builder and all the information is also there. This was also sent out to everybody back in July. Here is a clip from that email: non-profit lender Accion Opportunity Fund (AOF) who offers free resources and may be able to help meet your financing needs.

[Glarepolish]

Same happened to me . I have 7 loans all excellent, and yes it is vital to our business and now it is gone. I hope the Governor recognizes the difference between a business short term capital loan and a loan that looks like a Pawn shop loan.  Do you think the Governor of Nevada will take a second look and change the legislation to include viable Working Capital Loans Like Paypal??. Please let me know if getting the business registered in another state would be a good option in the mean time, and if so what state do you recommend? God Bless you all!!

[drprez]

The governor has nothing to do with this. This is done by the legislature write your local representative for them to bring it up in the 2025 legislative session.

[RebelsWireless]

I reached out to many people, including the governor. Just want to put the word out there. If more businesses contacts them, we may get their attention.

[THSS]

Same here.  7 successfully paid off loans.  I set my business goals this year dependent on my next loan and now have to figure something else out.  This is a business loan, not a payday loan or title loan.  It actually feels discriminating based on where my business is.  Not a good feeling at all, especially after a good standing in sales to accommodate MORE THAN DOUBLE the minimum payback requirement.  Paypal needs to stand up for its vendors for once!