SBA Warns Small Businesses administration of Scams to Help Obtain Government Loans

The U.S. Small Business Administration (SBA) warned that the agency has received several complaints from small businesses about abusive marketing practices, scams and exorbitant fees charged by companies offering to assist businesses get a loan, grant or other federal funds from the SBA. Complaints received by the SBA’s Office of the military officer (SBA OIG) include:

Companies charging small businesses high fees to supply assistance applying to SBA funding programs. Some companies allegedly guaranteed that the tiny business would obtain SBA funding if they paid the fee. The SBA doesn't endorse or give preference to specific private companies or their clients.

Companies charging small businesses for services never requested after the tiny business gave checking account and routing information to a caller claiming to be a corporation offering assistance.

Companies alleging that alittle business would be issued a “forfeiture letter” that might make the tiny business ineligible for any SBA funding for 3 years if the tiny business refused to use the company’s services.

The SBA said small businesses can get free assistance by calling one among the SBA’s 68 District Offices, or by visiting the SBA’s internet site . Assistance is additionally available at Small Business Development Centers, Women’s Business Centers, Veterans Business Outreach Centers and SCORE Chapters, either free or for an inexpensive fee. Location and get in touch with information for the centers is out there at sba.gov.