Square and Homegrown Partner to Deliver $24M Expansion Capital for Multi-Location Sellers

Square and Homegrown launched a $24M pilot program providing up to $1M in non-dilutive expansion financing for multi-location business operators. The flexible repayment structure ties payments to 1-6% of monthly revenue, reducing cash flow strain for growing restaurants, coffee shops, and fitness studios without requiring personal guarantees or equity dilution.

Square's partnership with Homegrown addresses a persistent gap in small business financing: growth capital for established multi-location operators who have outgrown traditional bank lending but lack access to venture-scale financing. This $24M pilot targets operators with proven revenue streams seeking expansion capital, a segment underserved by both traditional banking and venture finance due to perceived risk and complexity.

The revenue-based financing model reflects broader fintech trends toward alternative lending structures that align incentives between lender and borrower. Rather than fixed monthly payments that burden cash flow during slower periods, the 1-6% revenue-based repayment automatically scales with business performance. This structure has gained traction across fintech platforms serving small businesses, as it reduces default risk while maintaining borrower flexibility.

The non-dilutive aspect carries significant implications for multi-location operators who traditionally face pressure to surrender equity to access growth capital. By preserving ownership stakes and avoiding personal guarantees, Square positions this offering as a founder-friendly alternative to equity rounds or bank SBA loans. This appeals particularly to operators in restaurant and fitness sectors where margins are competitive and ownership retention matters strategically.

The pilot's scope—targeting specific verticals like restaurants, coffee shops, and fitness studios—suggests Square is testing demand and operational efficiency in capital-intensive, recurring-revenue businesses. Success here could validate expansion into other multi-location SMB categories. Broader implications include potential pressure on traditional bank lending for SMB expansion and validation of revenue-based financing as a mainstream capital source rather than niche alternative.

• →Square and Homegrown pilot $24M program offering up to $1M per eligible multi-location seller
• →Revenue-based repayment structure at 1-6% of monthly revenue reduces cash flow pressure for growing businesses
• →Non-dilutive financing with no personal guarantees preserves founder ownership and financial standing
• →Program targets capital-intensive sectors including restaurants, coffee shops, and fitness studios
• →Revenue-based financing validates alternative lending models as mainstream capital source for SMB expansion