As the coronavirus pandemic continues to evolve, small businesses are likely receiving a lot of information and being forced to make tough business decisions in order to survive. Business owners may also be receiving a steady flow of information on government relief loans. The Better Business Bureau (BBB) suggests that with the high volume of incoming messages, it may be easy to mistake a scam for a real offer. The BBB is sharing several tips to help business owners identify scam messages, particularly phony Small Business Administration (SBA) grant offers.
Tips for Spotting a Small Business Loan Scam:
- Look for a website that ends in .gov or .ca: Legitimate government entities will have websites and emails that end with .gov such as SBA.gov.
- Do a quick internet search for similar offers: Many government agencies helping small businesses are offering loans and other programs. Be sure to confirm that the offer is real before sharing personal or business information.
- Government agencies do not typically text or communicate through social media avenues such as Facebook. Be wary of unsolicited messages.
- There is no such thing as a "free" government grant. If you have to pay money to claim a "free" government grant, it is not really free. A real government agency will not ask you to pay an advanced processing fee.
- Businesses typically don’t receive government grants. In general, the federal government only offers grants to nonprofits, educational institutions, and state and local governments. Learn more at SBA.gov.
