The SBA (Small Business Association) received $730 million of the stimulus package to back more loans to small businesses. Specifically, the money is to be used to reduce the fees that the business borrower pays, and to guarantee the loan to make it more attractive for banks to take on.
This has led to some confusion among biz owners about the government’s role in loans. The government works through banks to dole out loans—anyone promising a direct government loan is a scammer. Some scammers are selling DVD packets that promise to reveal how to tap into the government pot to pay bills and/or start or save your business.
The truth: You do not need to pay to find information on SBA loans or government grants—ever.
Once the scammer has your credit card number, they may continue to bill you for unwanted items such as a monthly newsletter—as much as $80 a month.
Source:
BusinessWeek: Stimulus Prompts Small-Business Loan Scams
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