Before You Apply: Beware of Emerging SBA & PPP Loan Scams

The recently passed CARES Act which was put in place to assist those businesses who have been negatively impacted by the Coronavirus Pandemic is not just an important financial opportunity, but also creating a new way for scammers and fraudsters to prey on vulnerable applicants. Read on to learn about the most recent SBA loan scams. 

We’ve already seen a number of COVID-19 related scams including fake testing kits, vaccines, and unemployment scams. If you’re filing for the SBA loan programs or Payroll Protection Plans, it is important to become aware of risks out there and how to navigate through them.

While there is a rush to complete applications quickly before the money runs out, that should not mean sacrificing the time required to ensure your forms are safe and being sent to the correct destinations.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion stimulus package that is appealing to all but especially to fraudsters. Here are some of the PPP & SBA loan scams already being seen.

The FTC has recently filed a lawsuit against a company that has named itself “SBA Loan Program” in hopes to allegedly gain applications from small businesses even though they have no real ties to the U.S. Small Business Administration and its loan program. This type of soliciting is not only misleading but preys on the desperate businesses looking for stimulus relief to keep their employees on the payroll but does so during a time of crisis.

Any claims to assist with moving the claims along with faster payment are also false. These are set up specifically so that no application fees or other costs will be needed to submit for the loan. Beware of lenders who are not part of the trusted lender list or not an accredited financial institution. The same caution should be taken if companies are promising advances on the money as it could lead to further financial risk and damages down the line.

Please also keep in mind that the SBA will also not be calling out to any businesses regarding this program. If you receive a phone call or email from someone falsely representing the loan program, you should flag it as spam. Always mouse over contact information for email addresses to ensure the sender has a .gov account and ensure that loan numbers on paper mailings match-up.


SBA Loan Scams

Service Areas: New York ShreddingLong Island Shredding; New Jersey ShreddingConnecticut Shredding and more!