BBB warns of phony SBA grant offers

Transcript

Scammers are reportedly targeting small businesses with fake offers to receive assistance from the Small Business Administration (SBA).

The Better Business Bureau (BBB) says it has seen a few scans claiming federal grants are available as a form of coronavirus relief.

Here’s an example of one of those scams: business owners receive an email with an application from someone claiming to represent the SBA.

Once the application is received, the business owner receives an approval and request to pay a processing fee that can be thousands of dollars.

In some instances scammers are even hacking Facebook accounts and using them to endorse the fake services.

Experts say real government assistance never requires a processing fee in advance.

Authentic agencies also use email addresses and host websites using the extension “.gov.”

And relief to small businesses is generally only available in the form of loans.

Nonprofit and educational institutions are typically the only organizations that can qualify for grants.

Posted – 4.4.20