The won’t fund my loan, and they are holding me hostage because they have my loan so I cannot fund with someone else.Īnother consumer put it this way: “We have asked to withdraw this application so many times. Called the company but no one answers, just says to email and then hangs up. I have emailed on numerous occasions to different support emails. From that point on I received ABSOLUTELY NO COMMUNICATION from this company. I received my SBA ETRAN number on Feb 18th and uploaded all of my required documentation. I applied for a PPP Loan with Biz2Credit on Feb 17. They did so by rapidly accepting hundreds of thousands of applications and immediately obtaining SBA e-tran numbers for those applications before engaging in any real underwriting.” One of the consumers who contacted the defendants explained the impact of this COVID Catch-22: According to the FTC, “Defendants designed their application process to lock in as many consumers as possible and to block those consumers from applying to other lenders. Since then all of our messages have gone unanswered.Īccording to the complaint, the defendants continued to make their “10-12 business days” or “12-14 business days” claims even when they knew they weren’t honoring those promises.įurthermore, once a consumer applied for a PPP loan through a company like Biz2Credit and the SBA had issued what was called an e-tran number, the person wasn’t allowed to apply though another lender unless the first lender withdrew the consumer’s application. As of today, we are still waiting for funds to be deposited into our bank account. PPP loan for my restaurant back in February. As one consumer described the impact of the defendants’ alleged misrepresentations:īiz2Credit approved a. First, for some small business owners struggling for emergency funds during the worst days of COVID, the promise of fast processing was essential to their ability to survive. The complaint outlines the consequences of the defendants’ allegedly illegal conduct. According to the complaint – which also names Itria Ventures, LLC – the defendants lured consumers in with ads promising to process their applications within an average time frame “10-12 business days” or, in some instances, “12-14 business days.” But the FTC says that the defendants’ application processing was “riddled with delays,” resulting in tens of thousands of consumers waiting over two months for a final determination. When the SBA authorized a number of lenders to submit PPP applications on behalf of small businesses, Biz2Credit moved quickly into that line of work. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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