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COVID-19 Legal Resource Guide
May 18, 2020

FTC and SBA Send Warning Letters to Companies Over Misleading Advertising of Loans to Small Businesses

The FTC and Small Business Administration (SBA) sent warning letters to ITMedia Solutions, LLC and Lendio, Inc. over the deceptive marketing of loans to small businesses during the COVID-19 pandemic. The letters warn that consumers may believe that the companies are affiliated with the SBA, or that consumers can apply on their sites for loans through the Paycheck Protection Program (PPP) or other programs authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In addition, the letter issued to Lendio noted that the claims of Lendio’s lead generators are also misleading. The recipients were instructed to immediately remove the deceptive claims and to remediate any harm to small business consumers as a result of their claims. The recipients were also given 48 hours to respond to the FTC with the specific actions they have taken to address the agency’s concerns.

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