Client AlertsCorporate & BusinessScammers Obtain Fraudulent SBA Loans by Posing as Legitimate Companies

November 3, 20200

When tragedy hits, there are always nefarious people who will try to profit. The ongoing COVID-19 pandemic is no exception.

There have been recent instances in which scammers have successfully used publicly available information of unsuspecting companies to fraudulently apply for Economic Injury Disaster Loans from the Small Business Administration (SBA).  In one example, a UCC search performed on an entity in advance of a closing returned an unexpected UCC-1 filing in favor of the SBA.

The good news is that once the SBA was informed, it took steps to discharge the UCC and provided assurances that the company would not be responsible for repayment of the fraudulent loan. Resolution of these issues, however, can take some time and could delay a closing.

Therefore, the Business Law Group at Partridge Snow & Hahn encourages clients to be vigilant and perform UCC searches on their businesses to ensure that there have been no unexpected filings. We are available to assist with performing such searches and with guiding clients through the process of dealing with the SBA and having any unexpected UCC filings discharged.

Get In Touch

    Leave a Reply

    https://www.psh.com/wp-content/uploads/2024/02/PSH-320x212.png

    Follow us:

    PROVIDENCE OFFICE

    40 Westminster Street
    Suite 1100
    Providence, RI  02903

    BOSTON OFFICE

    30 Federal Street
    Boston, MA  02110

    SOUTHCOAST OFFICE

    128 Union Street
    Suite 500
    New Bedford, MA  02740

    Copyright ©️ 2023 Partridge Snow & Hahn | All Rights Reserved | Privacy Policy | Disclaimer