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4 Ways to Spot an SBA Loan Scam

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Late last week, the president signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion stimulus package aimed at shoring up individuals and businesses during this unprecedented coronavirus crisis. Cue the scammers.

Specifically, security experts say small-business owners and sole proprietors accessing the Paycheck Protection Program--which offers to allocate $350 billion in loans backed by the U.S. Small Business Administration--are prime targets. "We're talking $10 billion to $20 billion of fraud from this SBA program," estimates Hicham Oudghiri, co-founder and CEO of Enigma, a small-business-focused data analytics and fraud detection company. While banks typically report general fraud rates of around half a percent, Oudghiri notes that that number will likely climb, as interest in the PPP loans--which are 100 percent guaranteed by the SBA and come with minimal credit checks and no fees--is expected to soar.........

© Inc.com

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