The Small Business Administration (SBA) is warning business owners to be aware of scams involving abusive marketing practices and exorbitant fees charged by firms offering to help businesses obtain SBA loans, grants or other federal funds.
Examples include:
o Firms charging high fees to help businesses apply for SBA programs and promising the businesses they will get funding if they pay the fees
o Firms acquiring bank account and routing information from small businesses and then charging for services never requested.
o Firms alleging that a small business would receive a “forfeiture letter” making it ineligible for SBA funding for 3 years if the small business refuses the firm's services.
If business owners choose to use third parties for help in applying for SBA funds, they should ask for references and confer with trusted colleagues and institutions such as the Better Business Bureau. SBA-related fraud should be reported to the SBA Office of the Inspector General at 800-767-0385 or online at www.sba.gov/ig.
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