Michigan Chamber of Commerce issued the following announcement on Dec. 3.
The Chamber has been notified that some third- party businesses are using public data pertaining to the Paycheck Protection Program (PPP) in order to solicit business from PPP borrowers, specifically referencing the name of the lending institution. Some of these businesses are not disclosing that they are unaffiliated with the PPP lender, and other businesses are implying a relationship where none exists.
On November 5, a federal judge ordered the Small Business Administration (SBA) to release the names, addresses and precise loan amounts for all PPP and COVID-19 related Economic Injury Disaster Loan (EIDL) recipients. The judge found that SBA’s claimed exemptions from the Freedom of Information Act do not cover the PPP data sought by major news organizations. The SBA publicly released this information on Dec. 1.
The information released Tuesday shows that businesses of all types and across all industries benefited from this unprecedented program. However, it’s concerning that it included loan-level data, including business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of the lender, jobs supported, and loan amount, thereby opening the door to unwanted solicitations and potential phishing schemes.
Businesses and nonprofits with PPP and EIDL loans should be on high alert. Please know that banks will communicate directly with customers and lendees about their loans and the forgiveness process, not through third-party providers. When in doubt, please contact your financial institution.
The PPP, while far from perfect, allowed millions of struggling businesses in the country to weather the worst of the pandemic and saved millions of jobs. Members of Congress in both parties agree and have proposed reauthorizing the program so more small businesses can be helped, especially those that did not participate in PPP previously. The Michigan Chamber supports these efforts.
Please contact us with any questions at info@michamber.com.
Original source can be found here.
Source: Michigan Chamber of Commerce
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