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#2239918 - 07/21/20 04:22 PM Misuse of SBAD loan fund?
unknown Offline
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Joined: Apr 2005
Posts: 125
If business receives funding from SBAD Treas 310, does this money have to be used for specific purposes? Is there any restriction on how this money should be used for the business?

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#2239926 - 07/21/20 05:35 PM Re: Misuse of SBAD loan fund? unknown
rlcarey Online
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rlcarey
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Posts: 77,568
Galveston, TX
Not as limited as with PPP, but still has to be used to support the continuity of the business.
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#2239942 - 07/21/20 07:42 PM Re: Misuse of SBAD loan fund? unknown
krose Offline
Member
Joined: Jun 2008
Posts: 64
TN
Are any banks aware of fraud related to these SBAD Treas 310 deposits? Specifically the deposits are posting to individual accounts and the name on the deposit does not match the name on the account?

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#2239947 - 07/21/20 09:45 PM Re: Misuse of SBAD loan fund? unknown
HappyGilmore Offline
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Pulling people out of the ditc...
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#2239973 - 07/22/20 04:30 PM Re: Misuse of SBAD loan fund? unknown
unknown Offline
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Joined: Apr 2005
Posts: 125
How would I gain access to the private thread?

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#2239978 - 07/22/20 05:18 PM Re: Misuse of SBAD loan fund? unknown
BrianC Offline
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Illinois
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#2240059 - 07/23/20 07:43 PM Re: Misuse of SBAD loan fund? unknown
unknown Offline
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Joined: Apr 2005
Posts: 125
Is anyone seeing these SBAD loans deposited into personal account where it’s being payable to person’s name? Would this be potential SBA loan fraud?

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#2240069 - 07/23/20 08:45 PM Re: Misuse of SBAD loan fund? unknown
Q Offline
Junior Member
Joined: Jun 2015
Posts: 49
I have. Sent email with the information to account officer to find out more information. Majority we found out that person has a sole prop business or else ran a farm through their own name.

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#2240073 - 07/23/20 10:40 PM Re: Misuse of SBAD loan fund? unknown
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,568
Galveston, TX
https://content.govdelivery.com/accounts/USSBA/bulletins/296ee8d

The purpose of this Notice is to provide a brief overview of COVID-19 assistance available
under SBA’s Economic Injury Disaster Loan (EIDL) Program, including both advances (grants)
and direct loans, and to alert depository financial institutions to the potential for suspicious
activity related to COVID-19 EIDL funds deposited into business or personal accounts. This
Notice also provides points of contact at SBA for depository financial institutions to report
suspicious activity in the COVID-19 EIDL loan program.

Courtesy of Andy Z from the Private Forums
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2240083 - 07/24/20 12:18 PM Re: Misuse of SBAD loan fund? unknown
unknown Offline
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Joined: Apr 2005
Posts: 125
Thank you

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#2240766 - 08/06/20 08:24 PM Re: Misuse of SBAD loan fund? unknown
Marmaduchess Offline
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Marmaduchess
Joined: Oct 2009
Posts: 169
Oregon Coast
We had one of these ACHs come through on a personal account. We returned it and I emailed the OIG hotline as requested. I'm still a little confused as to whether we list our account holder as the subject on the SAR or if we file a SAR at all. Since we don't have a way of knowing whether they were the ones applying for the loan or the victim of a scam in this case (unable to reach customer).

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#2240814 - 08/07/20 07:17 PM Re: Misuse of SBAD loan fund? unknown
Julie Offline
New Poster
Joined: Apr 2018
Posts: 7
We monitor our ACH deposits for name mismatch. I have one today with business name going into a personal account. Are we required to notify customer that funds are being returned?

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#2240827 - 08/10/20 02:48 PM Re: Misuse of SBAD loan fund? unknown
HappyGilmore Offline
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Posts: 19,334
Pulling people out of the ditc...
please don't double post questions
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