Skip to main content

Cookies on BBB.org

We use cookies to give users the best content and online experience. By clicking “Accept All Cookies”, you agree to allow us to use all cookies. Visit our Privacy Policy to learn more.

Cookie Preferences

Many websites use cookies or similar tools to store information on your browser or device. We use cookies on BBB websites to remember your preferences, improve website performance and enhance user experience, and to recommend content we believe will be most relevant to you. Most cookies collect anonymous information such as how users arrive at and use the website. Some cookies are necessary to allow the website to function properly, but you may choose to not allow other types of cookies below.

Necessary Cookies

What are necessary cookies?
These cookies are necessary for the site to function and cannot be switched off in our systems. They are usually only set in response to actions made by you that amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not work. These cookies do not store any personally identifiable information.

Necessary cookies must always be enabled.

Functional Cookies

What are functional cookies?
These cookies enable the site to provide enhanced functionality and personalization. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

Performance Cookies

What are performance cookies?
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.

Marketing Cookies

What are marketing cookies?
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant content on other sites. They do not store personal information directly, but are based on uniquely identifying your browser or device. If you do not allow these cookies, you will experience less targeted advertising.
      Country
          Country
          Latest News

          BBB Scam Alert: Small Businesses, Don't Fall for This Phony SBA Grant Offer

          By Better Business Bureau. April 3, 2020.

          (Getty)

           

          Small business owners are getting hit with a lot of information and making tough decisions on how to survive the COVID-19 crisis. Emails are coming in from every direction about local, state, and federal government relief loans. They're also sifting through advice on how to keep employees, maintaining a safe work environment and tips on how to stay cybersecure online. With all of these messages flooding their inbox, social media, and phone, it’s easy to mistake a scam for a real offer.

          How the Scam Works:

          An email, text or caller ID appears to be from the U.S. Small Business Administration or an attorney representing the SBA. The “SBA” is offering grants just for small businesses affected by the coronavirus outbreak. The application looks simple and may involve completing a short form requesting banking and business information. After being approved, the business owner is asked to pay a “processing fee” up to a couple thousand dollars. This is just one example of the type of scam going around.

          BBB.org/ScamTracker has received several recent reports about a sophisticated new twist. After the “government agency” contacts business owners about the grant, a friend then reaches out through Facebook. This “friend” claims to have successfully received money from the exact same grant and wants you to know about the program. What a coincidence!  Naturally, the “friend” is not really a friend, but a compromised Facebook account, contacting all of your friends on Facebook.

          No matter how convincing the idea sounds and how much your business could use “free” money, don’t fall for it. If you receive an offer that appears to come from the SBA or another state or local government small business agency, research it before sharing any personal information. 

          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. Find the agency website through an online search (never click on a link in an email) and be sure the program is on their website
          • 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.

           

          For More Information

          Check out the SBA’s website (SBA.gov) for business resources and loans. 

          For consumer tips on COVID-19, go to BBB.org/Coronavirus,

          For more business tips, go to  BBB.org/COVID and  BBB.org/smallbusiness.

          If you’ve spotted a scam (whether or not you’ve lost money), report it to BBB.org/ScamTracker. Your report can help others avoid falling victim to scams.