SBA Tells Nearly 8,000 Businesses Applying for Economic Injury Disaster Loans (EIDL) Their Personal Information Was Exposed on Its Website

Breaking News from Tuesday, April 21, 2020

NPA’s Team GRC has located several media articles covering the SBA’s admission that its online application portal for the EIDL program leaked 8,000 applicants’ personal information to other later applicants on the same online portal. One report first found by NPA’s Washington counsel, Cliff Andrews, is from Business Insider https://www.businessinsider.com/sba-website-leaks-thousands-business-owners-personal-information-disaster-loans-2020-4.  Inc.com and the Seattle-based law firm of Schwabe, Williams, and Wyatt also posted reports as of 3 pm EDT today. No press release or other public statement from the SBA is available yet on its website. 

Business Insider’s reporting states the SBA claims that the leak did not affect separate applications for the Payroll Protection Program loans that SBA also manages. The NPA has no way to verify that claim at this time. 

For the 8,000 businesses that applied for the EID loans, SBA claims it has repaired the problem with the website portal after applicants reported that their online EIDL applications were being automatically “populated” with personally identifiable information about other businesses back in early April. 

The SBA appears to have notified affected businesses and has offered one year of free credit monitoring to businesses whose owners’ or principals’ personally identifiable information was leaked to other applicants. Reports note that the personally identifiable information includes names, addresses, and Social Security Numbers. It is possible that more information was leaked.

This means that business owners and principals who applied for EID loans up to today should start monitoring your personal credit reports for unauthorized account openings or applications and should monitor business and personal bank accounts and credit cards, as well. 

The NPA will follow what the SBA may release to the public about the leaks and the free credit-monitoring program offered and will provide updates as more information becomes available. 

If you receive a notice from the SBA about this EIDL leak, please share the contents of the notice with Fran Bishop, GRC Liaison, at fbishopdp1@gmail.com. 

This GRC Update is not intended and should not be construed as legal advice to NPA members. 
Members should consult their own lawyers for legal advice.

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