We at B&J Bookkeeping are always on the lookout for the newest in scams. One of the most prevalent are those that seem as if they are coming from a legitimate agency. One such is the SBA scam. We will tell you more about this hoax below.
What is the SBA Scam?
In short, the SBA scam occurs when someone posing as the Small Business Administration contacts you with a deal too good to be true. It always is. They can then scam you a number of ways and cost you thousands of dollars and precious hours of your time. However, there are ways to avoid this and other scams by staying a step ahead.
The Coronavirus Aid, Relief, and Economic Security Act Scam
Aka the CARES Act, this law is legitimate and helps your business out with things like low to no interest business loans, PPP, and other items as you qualify. Many scammers know this. They may contact your business in a number of ways to tell you that you have prequalified for some service or other. And that’s how it starts. They may then ask for your personal information in order to steal your identity. They may ask for some “upfront payment” to help secure your benefits. The only thing for certain is that you will never receive whatever it is they promised.
The SBA Grant Scam
Another service provided by the SBA is a particular number of grants for small businesses. These can be general grants, grants for women, grants for minorities, or by type of business. However, it is highly unusual for them to contact you directly to apply for them. The usual order is you go to them to see if you qualify for any grants and for information on how to do so. Just remember that even if you have contacted the SBA and are expecting to hear from them, they only use email addresses that end in “@sba.gov.” Don’t believe the name on the email. Always expand to see the actual email address you have received a communication from.
The SBA Loan Scam
This SBA Scam is similar to the one above. Someone posing as the SBA will tell you that your business has prequalified for a highly advantageous loan. You may be asked to pay some processing fees or similar cost. In addition, you may also be offered a high interest bridge loan until such time as your real loan comes through. Do not accept these terms. SBA loans can be given out by other parties. However, their brokers can charge no more than 3% for any loan worth $50k or less, up to 2% for $50k to $100k, and an additional 0.25% for amounts over $1 million. They can earn no more than $30k for your loan in any circumstance.
You may click here to learn more from the SBA.
Avoid the SBA and other Scams with Bookkeeping Services in Houston
We are focused on helping your Houston-based small to mid-sized business avoid these scams and make the most of their money. Our bookkeeping services are professional, fairly priced, and help you properly perform the tasks the scammers claim to. Feel free to contact us to learn more on how B&J can help with your bookkeeping needs.
