The Small Business Administration is urging small business owners across the state to remain vigilant for potential scammers.
The SBA provided help to small businesses in the form of loans, grants, payment assistance, and other programs during the COVID-19 pandemic. But most of the pandemic programs have ended, and SBA says it has returned to its normal loan and disaster programs. The vacuum allows an opportunity for crooks to step in.
The SBA said businesses owners are being contacted by people who promise approval of an SBA loan, but require payment up front, or they’ll offer a high-interest bridge loan.
“SBA does not initiate contact on either 7a or Disaster loans or grants. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud,” SBA said.
The main delivery method for a scammer is by phone, and close to $12 million has been lost in 2021 using that method.
Mail fraud is also a common scheme. High-risk mail includes notices of prizes, sweepstakes winnings, vacations and other valuable offers.
Junie’s Closet Owner Kristy Eubanks said she received a letter in the mail and email communication, promising relief.
“I have not had any communication, since it is not a program that I currently feel a need for,” she said.
People fall victim to scammers all the time, and…
