PROTECTING SMALL BUSINESS

Sens. Amy Klobuchar (D-Minn.) and Elizabeth Warren (D-Mass.) on Wednesday called for more protections to help defend small businesses against scams targeting coronavirus-related relief funds.

The letter comes as the Small Business Administration (SBA) has been doling out forgivable loans to small businesses willing to meet certain conditions.

In a letter to the Federal Trade Commission (FTC), former presidential candidates Warren and Klobuchar led a group of Senate Democrats urging the agency to take action to defend small businesses, and to keep the businesses informed on how to defend themselves.

They specifically pointed to concerns that scammers were targeting the SBA funds going to small businesses, which have been hit hard by shutdowns during the coronavirus pandemic. The scams involve sending fake emails from the SBA to trick businesses into disclosing sensitive financial information, or scammers calling the businesses pretending to offer financial relief.

The senators asked that the FTC take “bold actions” to address the scams.

“We are calling on the agency to take stronger action to ensure that the huge population of potential victims—the nearly 60 million hardworking men and women who own or are employed by small businesses—are protected during this time of crisis,” the senators wrote.

The senators requested answers from the FTC around what steps the agency was taking to assist small businesses if they fall victim to the scams, how it is helping historically disadvantaged businesses, such as those in rural or minority communities, and whether the FTC needed additional resources to combat the scams.