Beware of Loan Scams
RDF encourages all Paycheck Protection Program loan borrowers to visit the Small Business Administration (SBA)’s website to learn about their data sharing policies. Be in the know about the types of personal information released and the companies who are able to access that data.
Private companies may access this data and use the information to send you a solicitation for a small business loan. We are aware many small business owners who received a PPP loan from Raza Development Fund have already received a solicitation letter listing RDF as your lender.
Be aware, sometimes it is difficult to spot a legitimate request from a scam. That’s why it is important to be extra careful to avoid becoming a victim of a loan scam. Here are some tips to help you avoid making this mistake:
- Check for a company website
- Check for the company’s physical office address
- Check for a company representative name or contact person
- Check for a company phone number
- Offer may appear to be an official letter from the federal government, but isn’t
- Offer requires no credit check
- Offer is too good to be true
- You are pressured to act immediately
- Lender asks for money upfront
- Lender does not disclose interest rate, term of loan or origination fees
And lastly, remember, it is important to do your research and check with the Better Business Bureau to validate the business is legitimate. You may also want to check for customer complaints before taking the next step to apply for a loan.
The best advice Raza Development Fund can offer small business owners is to work with a lender you trust. That may be your local banker, credit union or community development financial institution such as RDF.