Financial institutions are raising red flags about suspected fraud surrounding the Small Business Administration’s COVID-19 Economic Injury Disaster Loan (EIDL) program, according to the SBA’s Office of Inspector General.
Nearly 440 financial institutions ranging from small, local credit unions to major national institutions are alerting the SBA about suspected fraudulent EIDL loan applications. The IG's office identified $250 million in EIDL loans and advance grants given to potentially ineligible businesses and found $45.6 million in potentially duplicate payments.
Examples of suspicious activity reported by financial institutions include:
In some situations, financial institutions have frozen funds and are trying to contact the appropriate department in the SBA to provide information about the borrower and resolve the frozen funds.
How to protect your business
Last updated: 07/31/2020
The Covid-19 Tax Resource Portal (herein after referred to as "Site") is made available as a service to our clients and others for informational purposes only. These materials and information should not be considered as, or a substitute for, accounting, tax or financial advice. While it is hoped the materials provided here are helpful as background material, it is not warranted either expressly or implied as accurate or complete. You should refrain in taking any action based upon the information provided here until you have received proper counsel.
In addition, you understand that any links to any other web site or services does not constitute endorsement of or warranty of any service, product or information provided on their site(s). These links are provided for convenience only.
While our intent is to make transmissions to and from this web site secure, it is understood that no warranty of security can be made and that unforeseen security breaches by "hackers" is a possibility, however slight.
Reproduction of part or all of the contents on this site in any form is prohibited other than for individual use only. All content on this site is copyright protected and/or trademarked as appropriate and may not be copied, duplicated or altered in any way.
In no event shall Jones & Company CPA, LLC, its affiliates or suppliers of any content on this site be liable for any indirect, incidental, special, punitive damages or consequential damages of any kind, or any damages whatsoever arising out of or related to your use of the Site, the content and other information obtained therein.
© 2020 - 2021. All Rights Reserved.