Paw.com Forced into Massive Liquidation as Main Street Lending Program Loan Comes Due
A profitable, ontime borrower is refused refinancing by its longtime community bank and SBA, forcing drastic 65% off sale and concerns over fairness in small business lending.
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 balloon payment came due, the bank and SBA declined to provide any refinancing or bridge alternatives,” said recently hired CEO Michele Van Tilborg.
“Sometimes investments just don’t work out,” added primary investor Colin C. Campbell, author of Start. Scale. Exit. Repeat. “Paw.com is a great company with great products, but it was just too hard to make that balloon payment under these terms. It’s a shame that a program designed to help small businesses survive the COVID pandemic has ended by forcing small businesses to pay up or go under.”
As part of its restructuring, Paw.com will:
- Close several warehouses across the country
- Liquidate all inventory, including bestsellers, at 65% off
- Continue operations post-sale with plans to return to full pricing and profitability
The sitewide liquidation sale begins immediately, at www.paw.com.
The Bigger Picture: Fed Program Comes Due
Paw.com is one of the first consumer facing brands to publicly disclose challenges tied to the expiration of the Federal Reserve’s $600 billion MSLP program, which ended new loans in 2021 but left borrowers with steep 2025 maturity cliffs. Many U.S. businesses now face 70 percent balloon payments they are unable to refinance, despite years of on-time payments.
“Not every business that took an MSLP loan will be able to make that final 70 percent payment,” Campbell added. “We just decided to be honest about it and treat our customers and suppliers with transparency.”
“Our plan is to repay the loan through this liquidation, settle outstanding supplier obligations, and relaunch the company with the goal of operating profitably while continuing to bring new and innovative products to market,” Van Tilborg added.
About Paw.com
Paw.com is one of the first consumer facing brands to publicly disclose challenges tied to the expiration of the Federal Reserve’s $600 billion MSLP program, which ended new loans in 2021 but left borrowers with steep 2025 maturity cliffs. Many U.S. businesses now face 70 percent balloon payments they are unable to refinance, despite years of on-time payments.
Press Inquiries
Mimi Ostrander
support@paw.com
1 (800) 607-1865
701 N Andrews Ave, Fort Lauderdale, FL 33311, United States
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