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Jan 8, 2026 12:00 PM

Paw.com Forced into Massive Liquidation as Main Street Lending Program Loan Comes Due

Fort Lauderdale, Florida, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Paw.com, the popular direct-to-consumer pet lifestyle brand known for innovative products including design-forward dog beds, blankets, and car seat beds, announced today that it will begin a structured inventory liquidation following the expiration of its Main Street Lending Program (MSLP) loan. A local community bank and the Small Business Administration (SBA) declined to offer refinancing or alternative support as the loan reached its final maturity.

The company, which remained current on all payments and was profitable in 2025, is among hundreds of U.S. businesses now confronting the final balloon repayment structure of MSLP loans issued in 2020. These loans featured deferred or minimal principal payments in years 1 and 2, followed by 15 percent repayment in years 3 and 4, and a balloon payment of 70 percent in year 5 - a lump sum now due for thousands of borrowers.

"We made every payment and had a profitable year despite a difficult turnaround, but it still wasn't enough. When the final ...