NIADA Warns Dealers About PPP Scams

By Staff Writer December 30, 2020

 On Dec. 1, 2020, the Small Business Administration released public data about businesses that received loans through the Paycheck Protection Program.

That information – which includes all PPP borrowers’ names, addresses, exact loan amounts and the lender that provided the loan – was released in accordance with a court order that resulted from a Freedom of Information Act lawsuit filed by the Center for Public Integrity and joined by 11 news organizations, including The New York Times and The Washington Post.

The disclosure includes all businesses that received a PPP loan, including loans that have already been forgiven, those in the process of requesting forgiveness and those that have not yet applied for forgiveness.

Unfortunately, third-party businesses can use the information in the court-ordered disclosure to target marketing materials toward PPP loan recipients. Those materials could reference the PPP lender and might even imply they have a relationship with the lender.

NIADA urges its members who have received PPP loans to be wary of any such communications purporting to be affiliated with the PPP, the Small Business Administration or your PPP lender. Check with your lender or the SBA to confirm any such claims.

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Last modified on Wednesday, 30 December 2020 16:37