Small business loans could become target of fraud and a government watchdog is already trying to stop it

CNN — As small businesses across the country clamor to apply for loans under the $2 trillion stimulus package, work is already being done to try and reduce any outbreak of fraud in the program. Treasury Secretary Steven Mnuchin said in an interview with Fox Business Monday that the small business loans included in the stimulus package amounting in nearly $350 billion would become available as soon as Friday. “The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration response to the Novel Coronavirus Pandemic,” the document reads. “Fraudsters have already begun targeting small business owners during these economically difficult times.” The document included a warning that small business owners should not have to pay anything upfront. “It is our responsibility to tell small businesses: do not respond to an offer for financial help that is not initiated by yourself…If you don’t initiate the conversation, then be really, really careful.” The $350 billion about to be disbursed through the Payment Protection Program will allow small businesses to apply for loans to keep staff on payroll.