WASHINGTON
– The U.S. Small Business Administration (SBA) is warning small businesses
to use caution if they are contacted by firms offering to help them apply for
funds available through SBA programs.
SBA and
SBA’s Office of the Inspector General (SBA OIG) have received several complaints
from small businesses about abusive marketing practices, scams, and exorbitant
fees charged by firms offering to help them obtain a loan, grant, or other federal
funds, from SBA.
Some of these complaints include:
- Firms
charging small businesses high fees to provide assistance applying to SBA funding
programs. Some firms allegedly guaranteed that the small business would obtain
SBA funding if they paid the fee. SBA does not endorse or give preference to specific
private companies or their clients.
- Firms charging small businesses
for services never requested after the small business gave bank account and routing
information to a caller claiming to be a firm offering assistance. SBA recommends
that small businesses never provide social security numbers, bank account information,
or credit card numbers to anyone; and, never over the telephone.
- Firms
alleging that a small business would be issued a “forfeiture letter”
that would make the small business ineligible for any SBA funding for three years
if the small business refused to use the firm’s services.
When
electing to use a third party to apply for SBA funding programs, small businesses
should also bear in mind:
- Small businesses can get free assistance
in person or by calling one of SBA’s 68 District Offices and from information
on SBA’s Web site (www.sba.gov).
They can also get assistance from Small Business Development Centers, Women’s
Business Centers, Veterans Business Outreach Centers and SCORE Chapters, either
free or for a reasonable fee. Location and contact information for the centers
can be found on SBA’s Web site.
- Small businesses should ask
for references and confer with trusted colleagues and institutions, such as the
Better Business Bureau, when selecting service providers.
- Small
businesses should clearly establish and document:
1) What they are being
charged;
2) When they will be charged;
3) What they must do; and
4)
What services they will receive.
SBA’s Office
of the Inspector General will investigate and respond to all complaints. SBA encourages
anyone with knowledge of a misrepresentation regarding SBA Business Loan Programs,
or any other SBA program, to contact SBA OIG by calling the OIG Hotline toll-free
at (800) 767-0385, or submitting an online report at the SBA OIG Web page (www.sba.gov/ig),
and click the link for “Report Fraud Waste or Abuse.”
Anyone
who has a question regarding an SBA loan or any SBA program, may contact their
local SBA
District Office, the SBA
Answer Desk at 1-800-U-ASK-SBA (1-800-827-5722) or e-mail answerdesk@sba.gov.
