Sent: Sunday, August 16, 2020 5:04 PM
To: Team
Subject: Fraudulent Files
Importance: High
Good Afternoon Team,
Here are some pointers to take into account while processing:
1. If a file has a “Public record search did not find business” info alert,
perform an Google search (SOS, Bizapedia, etc.) to determine whether
you can locate the business. If you cannot locate it, proceed with a
decline. We currently have too much fraud as it is, and we are trying not to
give applicants additional time to provide fraudulent documentation. For
Sole Proprietorships and Independent Contractors, you can give them a
few hours to provide a 1099 that must be reviewed to verify legitimacy.
Sole Props and Independent Contractors are given a little time since they
likely will not have presence online. If you don’t have it at the end of your
shift on that same day, proceed with a decline. All other business entities
(LLCs, Partnerships, Corps, etc.) should be automatically declined if you
cannot find the business online.
2. Applicants who were declined because the Public records search did not
find a business will be required to provide us with the 2019 (or most
recently filed) income tax return along with a signed IRS Form 4506-T as
part of any reconsideration request. The 4506-T will be used to request
tax transcripts with accurate information directly from IRS. We are not
requesting 4506T forms at processing.
3. Files with fraud alerts for suspicious online activity, device associated with
fraud, High Risk IP address, and Client is International (but business is not
Puerto Rico, Guam, American Samoa, etc.) should be declined.
4. Files with related deals by bank accounts that are not the same business
or person should be declined.
5. Files with bank accounts that are not in the applicant’s name (e.g.
Daenerys Targaryen is applying and Name on Bank Account shows
Sansa Stark) should be declined.
6. Files with email addresses or phone numbers in somebody else’s name
that is clearly not related should be declined.
7. Files with email addresses with “dots” that may be moved around
(e.g. jo.hn.do.e@gmail , j.oh.nd.oe@gmail, j.o.h.n.doe@gmail) or foreign
domains (.ru, .uk, cn., etc.) should be declined.
For #1, Be sure to do your due diligence to find the business. If you can’t, it is a decline.
You must enter a note in the file before you decision the file for a decline. An example of
that note, “Per my guidance, I am to decline if I cannot locate the business.” If you

 decide to take a 1099 from a Sole Prop or Independent Contractor, please make sure it
is legitimate. Review the dates, signatures, names, and figures listed on that document.
We are not really relying on Schedule C’s that much since we found out there are
websites for applicants to create fraudulent tax returns.
Be sure to not waste your time on 3-7 above. Go ahead and decline.
Hope this helps you to decision some of your files faster…
Let me know if you have any questions.
Team Lead
U.S. Small Business Administration
Office of Disaster