Small businesses warned to be wary of online companies offering SBA loan assistance

Crime

WASHINGTON, (WWLP)–The Federal Trade Commission (FTC) and U.S. Small Business Administration (SBA) say several on-line companies are misleading small businesses about applying for COVID-19 relief SBA loans.

The agencies sent warning letters to six companies that offer to expedite SBA loans for businesses struggling during the national health crisis. The letters direct the companies to remove all false claims from their websites immediately.

The on-line companies are alleged to be misleading consumers that they are affiliated with the SBA or about their role in helping businesses get SBA Paycheck Protection Program (PPP) loans. As a result, small businesses that applied for the loans through the listed websites may be left empty-handed.

The agencies said one or more of the companies might be misleading small business owners by:

  • Using the SBA’s name or official logo on their websites;
  • Promising easy applications and quick approvals;
  • Telling consumers they can apply right on their website; and
  • Listing their address as the SBA’s headquarters in Washington.

The FTC and SBA sent the letters to Taycor Financial (disasterloanassistance.com); SBADisasterLoan.org; USAfunding.com; SBALosAngeles.com; Madison Funding Partners (madisonfundingpartners.com); and NYMBUS (NYMBUS.com).

To find information about an SBA PPP loan, visit sba.gov/coronavirus, then click here to learn more about available SBA loan and debt relief options.

Here are some tips that can help you avoid scammers:

  • Don’t apply for a loan without verifying the lender. Only SBA-authorized lenders can provide PPP loans, and other loans may be available through SBA directly. To find an SBA-authorized lender in your area, use this SBA tool.
  • Be cautious about companies that offer to expedite or facilitate your ability to get PPP loans or that promote a special relationship with the SBA.

If you think a company misled you about an SBA loan, contact ftc.gov/complaint.

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