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Avoid Small Business Scams During Covid-19

Small business scams

Small businesses have many challenges to navigate on company and personal levels. Though there have always been scams out there you may be aware of, new versions evolve with the times, technology and world situations. Since large corporations are better sheltered from economic disruption, smaller businesses have presented as more desperate, so become more vulnerable to Covid-19 related scams:

  • Misinformation – With a novel virus, facts were not available from the beginning and decisions regarding public health and the economy had to be made. While there’s still bound to be some normal amount of misinformation floating around, look for statistics from authoritative sources before making business decisions, especially when offered services through a phone call or online from a third party.   
  • Sales of Faulty Protective Equipment and Gear – Whether you are selling to industry, the public or providing for your employees, it’s important to educate yourself regarding the quality and efficacy of masks, gloves and other cleaning materials you distribute. Faulty and low-quality items of this nature are literally flooding the market.
  • Government Loans – The federal government, states and local agencies have made trillions of dollars available to small businesses. Unfortunately, small businesses must also watch out for the 3rd party companies that promise they can broker these government loans for you for a fee. There is a lot of paperwork and documentation needed for SBA & PPP loans, but you should not have to pay to apply. Furthermore, since there is no guarantee of getting a loan, you might well end up paying for a service you can do yourself without ever getting the loan. 
  • Other Cash Loans – Small lending companies already target small businesses for loans with very high interests and quick turnaround repayments. While these companies have long preyed upon desperate small business owners, it’s become easier to muddy the waters. Potential unsuspecting owners might assume that some of their loan might be forgiven, as if they are connected to government loans. Know that short-term, high interest loans in any situation are never good for small businesses.
  • Identity Theft – With the fervent applications out there from small businesses who need loans and grants to get through the economic impact of Covid-19, it’s more important than ever to protect your company’s sensitive financial data. Always be sure you are on a real “.gov” website and your documents are in the proper format. Print out documentation and other confirmations of all submissions.
Posted on June 9th, 2020 by Client Advocate Team

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