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Paycheck Protection Program fraud alert: What Michigan businesses need to know

Advocacy News – April 7, 2026  

What’s happening: In 2020-21, the Paycheck Protection Program (PPP) distributed roughly $800 billion to 11 million small businesses to protect jobs. Now fraudsters are trying us all available public data to target those businesses with sophisticated, evolving scams.

Be aware: Bad actors are getting more sophisticated and convincing. Watch out for these common tactics:

  • Law enforcement impersonation: Calls claiming your business is under investigation, with threats of arrest unless you “repay” funds immediately.
  • Bank spoofing: Fake calls that appear to come from your financial institution, asking for passwords, PINS or verification codes.
  • Official-looking mail: Letters citing real loan details, warning of fines or prison time to pressure payment.

The bottom line: Legitimate agencies will never demand sensitive information or payment over the phone, email or text. If you receive a suspicious call:

  • Hang up and contact your bank or the SBA directly using official channels.
  • Never share login credentials or one-time codes.
  • Don’t pay on demand.
  • Notify your local FBI office or file a report at IC3.gov to help track and stop fraud trends.

Go deeper: Check out this flyer from our friends at the MI Bankers Association for more on how to spot and avoid these scams.