The Federal Trade Commission (FTC) and Small Business Association (SBA) aimed warnings this week at six companies to cease potentially misleading marketing geared toward small businesses seeking COVID-19 relief loans.
Six letters were sent out individually by FTC to California-based companies Taylor Financial and Small Business Advocates – Los Angeles; New York-based companies Madison Funding Partners, Inc. and USAFunding.com; SBADisasterLoan.org; and the Florida-based company NYMBUS, Inc.
“The letters highlight claims by the companies that could lead consumers to believe the companies are affiliated with the SBA, or that that consumers can apply on their websites for loans through the Paycheck Protection Program (PPP) or other programs authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” FTC said in a press release.
The letters direct the companies to inform FTC with 48 hours about the actions that they will take to “ensure all deceptive claims are removed and to remediate any harm to small business consumers.”
On May 18, FTC sent out two letters of warning to different companies about misleading marketing practices aimed at small businesses seeking COVID-19 relief loans.