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The latest recipients of government warning letters are six companies that said they could speed U.S. Small Business Administration (SBA) loans for businesses struggling to stay afloat during the COVID-19 pandemic. The letters – from the FTC and the SBA – direct the companies to remove all false claims from their websites immediately.

According to the FTC and SBA, the letter recipients may be misleading consumers that they are affiliated with the SBA or about their role in helping businesses get SBA Paycheck Protection Program (PPP) loans. As a result, small businesses that applied for the loans through the listed websites may be left empty-handed.

The agencies said one or more of the companies might be misleading small business owners by:

  • Using the SBA's name or official logo on their websites;
  • Promising easy applications and quick approvals;
  • Telling consumers they can apply right on their website; and
  • Listing their address as the SBA’s headquarters in Washington.

The letters require the companies to notify the FTC within 48 hours of the specific actions they have taken to address the agencies’ concerns. The FTC will follow up with companies that fail to make adequate corrections. 

The FTC and SBA sent the letters to Taycor Financial (disasterloanassistance.com); SBADisasterLoan.org; USAfunding.com; SBALosAngeles.com; Madison Funding Partners (madisonfundingpartners.com); and NYMBUS (NYMBUS.com).

Are you looking for an SBA loan? To find legitimate information about these loans, visit sba.gov/coronavirus, then click here to learn more about available SBA loan and debt relief options.

Here are some tips that can help you avoid scammers:

  • Don’t apply for a loan without verifying the lender. Only SBA-authorized lenders can provide PPP loans, and other loans may be available through SBA directly. To find an SBA-authorized lender in your area, use this SBA tool.
  • Be cautious about companies that offer to expedite or facilitate your ability to get PPP loans or that promote a special relationship with the SBA.

If you think a company misled you about an SBA loan, please let us know at ftc.gov/complaint.

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2 Comments

Artbauer
July 02, 2020
the reason why is that happening is because the SBA is taking extremely long time to process the loans, I applied 90 days ago and still dont even have a response so far, that is unacceptable we the small business are going thru hell now trying to survive but nobody is doing anything about it, please hire more people if you really want to help small business if not you just making more difficult forcing small business to close or be hungry, I think its about time you guys do something about it if you really want to help the Small Business or give someone else to do it for you if you are not capable to do it.
csherman
July 13, 2021
We applied for the additional monies on our SBA loan back in April of 2021 and still have no answer. When we call we get many different answers, the main reason for the lag is due to the IRS not sending tax returns. Then last week a representative told us they weren't waiting on the IRS anymore. Wonderful, we thought..... Today we were told by yet another agent that our file is still waiting on the IRS to send tax returns. We have submitted them twice, nothing has changed and this whole thing is very frustrating. We will not be here in another month if something does not happen. We have pulled in every favor, every personal dollar that we can and are now currently and completely out of options.

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