Block Subsidiary Secures FDIC Approval for Cash App Borrow Loans
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Block Inc. said its Square Financial Services industrial bank subsidiary received approval from the US Federal Deposit Insurance Corp. to begin offering consumer loans directly through its Cash App Borrow product.
Consumer loans were offered earlier through external partner First Electronic Bank. Cash App saw nearly $9 billion in originations in 2024, the San Francisco-based company said in a statement on Thursday. Borrow loans will now be offered to Cash App users directly by Square Financial. There will be no impact on the terms of outstanding loans while Square Financial begins servicing and originating them over the next few weeks, the company said.