WASHINGTON, (WWLP) – The Federal Trade Commission (FTC) and the US Small Business Administration (SBA) say several online companies are misleading small businesses when they apply for COVID-19 relief SBA loans.
The agencies have sent warning letters to six companies offering to speed up SBA loans for struggling businesses during the national health crisis. The letters call on the companies to immediately remove all false claims from their websites.
Online companies would mislead consumers about being affiliated with the SBA or their role in helping businesses obtain SBA Paycheck Protection Program (PPP) loans. As a result, small businesses that have applied for loans through the listed websites may find themselves empty-handed.
The agencies said that one or more of the companies could mislead small business owners by:
- Use the SBA’s official name or logo on their websites;
- Easy applications and promising quick approvals;
- Tell consumers that they can apply directly on their website; and
- List their address as the SBA 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 on an SBA PPP loan, visit sba.gov/coronavirus, then Click here to learn more about available SBA loans and debt relief options.
Here are some tips that can help you avoid scammers:
- Don’t apply for a loan without checking with the lender. Only lenders authorized by the SBA can provide PPP loans, and other loans may be available directly through the SBA. To find an SBA-approved lender in your area, use this SBA Tool.
- Beware of companies that offer to speed up or facilitate your ability to obtain PPP loans or that promote a special relationship with the SBA.
If you think a company has misled you about an SBA loan, contact ftc.gov/plaint.
