Insights into the world of small business lending and development
Business Owners: Beware of Coronavirus Loan Relief Fraud
This blog originally appeared on the blog of our partner CDC Small Business Finance
As a small business owner, we know you need relief and you want it fast. We urge you to be diligent when getting an emergency loan. It’s critical to know how to not fall victim to scams and fraud.
“Fraudsters have already begun targeting small business owners during these economically difficult times,” according to the SBA, which warned owners in particular of grant and loan fraud and phishing schemes.
One very important alarm bell: The SBA will NOT initiate contact with you on 7a loans or disaster relief loans or grants.
“If you are proactively contacted by someone claiming to be from the SBA, suspect fraud,” agency officials said.
The SBA shared other tips to help small business owners protect themselves against potential fraud schemes, particularly related to grants, loans and online phishing activity.