Small Businesses Should Beware of Phony Paycheck Protection Lenders

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Small business owners struggling with the economic fallout from the coronavirus outbreak  have another potential hindrance to worry about: phony agencies pretending to be affiliated with the U.S. Small Business Administration’s Paycheck Protection Program (PPP) that are instead leaving many small business owners empty-handed when they need aid the most.

According to a recent CBS News article, one of the phony agencies deceived small businesses into thinking it was tied to the relief program by claiming to be an SBA representative through frequent phone calls, follow-up emails and even by touting the website: “SBAloanprogram.com.”

Due to the emergence of coronavirus-related scams, the Federal Trade Commission advises small business owners to follow a series of tips when applying for PPP loans, including:

  • If you get an email that looks like it’s from the SBA or your bank, don’t click on any links. Instead, go directly to the organization’s website for information.
  • The government will not ask you to pay upfront and it won’t call to ask for your Social Security number, bank account information or credit card number.
  • Be cautious about companies that offer to expedite or facilitate your ability to get PPP loans. Stick with those you already know and trust.

Small business owners have enough to worry about during this pandemic, don’t let applying for loans be one of them. Contact our experienced attorneys at Busch, Slipakoff, Mills & Slomka, LLC to learn more.