Get Rich Quick Schemes (EIDL/PPP)Fraud
There are numerous advertisements on Facebook, Instagram, Linkedin, and Craigslist advertising how one can acquire an EIDL or PPP loan for your business. Now I have seen many of these advertisements and will simply state if they sound too good to be true they normally are. I want to first make it clear to anyone who hasn't had a business for over a year which you have been operating as a source of income please do not apply for any of the loan products being offered for the disaster relief fund. The two most popular loans which are being offered are the EIDL and PPP loan.
To do so is a federal crime. There have been various Instagram influencers as well as others who have been indicted for fraud in regards to these loans. Now I also want you to save your money as there are people who state you can get a loan for a new business which you cannot use these two programs for that purpose. The SBA has strengthened their underwriting process as they will require you to provide various documents such as a 4506T which gives the SBA permission to retrieve your tax records. If you have not filed business taxes you do not qualify for either of these loans. The SBA will also review your business bank account records and if your business bank account is less than 1 year old you will more than likely be disqualified for either program.
Do not give your hard-earned money to someone who is guaranteeing you will acquire an EIDL or PPP loan. The SBA has created stronger safeguards to prevent fraud which can prevent those who do not need or qualify for such funding from preventing those legitimate businesses who truly do need those funds. There are various legitimate ways to fund your new business so please do not waste your money on trying to acquire a loan that you do not qualify for. Also do not risk your freedom if you don't qualify for a loan as you do not have a legitimate business. The risk to reward is simply not worth it and you will get caught as the information provided to acquire the loan is also the information that will be used to convict you of wire fraud. The average prison sentence for such fraud is 10 years of federal time.
This is a great time to start a business so don't be discouraged simply do it the right way. If you have any questions please leave a comment.