By Colin Kellaher

Square Inc. Friday said Jacqueline Reses has resigned as head of its small-business lending program, Square Capital, effective Oct. 30.

Ms. Reses, Yahoo Inc.'s former chief of development, joined the San Francisco payment-processing company in late 2015 as Square Capital lead.

Square said Ms. Reses helped the company achieve a number of milestones during her five-year tenure, including the conditional approval of its industrial-loan charter application by the Federal Deposit Insurance Corp. earlier this year, which paves the way for Square to launch its own bank, Square Financial Services, next year.

Under Ms. Reses' leadership, Square Capital earlier this year began offering loans under the U.S. government's Paycheck Protection Program to help provide relief to companies suffering from the impact of the coronavirus pandemic. The company in August said it facilitated roughly $873 million in PPP loans to more than 80,000 small businesses in the second quarter.

Ms. Reses had been slated to serve as executive chairwoman of Square Financial Services, which is required to remain independent from the rest of the company. Square said Lew Goodwin, the bank's chief executive, will report to Square Chief Financial Officer Amrita Ahuja in the interim to preserve that independence.

The remaining Square Capital team not required for the bank will now report to Alyssa Henry, who already manages Square's other financial-services offerings for sellers, including payroll, instant transfers and the Square Card business debit card, the company said.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

10-02-20 1049ET