Daily Press

SBA reports data breach in disaster loan site

- By Joyce M. Rosenberg Associated Press

NEW YORK — Thousands of smallbusin­ess owners reeling from the aggressive measures taken to halt the spread of the coronaviru­s may have had their personal informatio­n exposed last month on a government website that handles disaster loan applicatio­ns.

The Small Business Administra­tion said Tuesday that the personal informatio­n of more than 7,000 business owners applying for economic injury disaster loans was potentiall­y seen by other applicants on the SBA website March 25.

The SBA said only the disaster loan program was affected, not the Paycheck Protection Program, which did not begin until April 3 and is handled by a separate system.

SBA spokeswoma­n Carol Wilkerson said the agency has notified the 7,913 owners whose informatio­n may have been exposed and offered them a year of free credit monitoring. The agency immediatel­y disabled the affected part of its system, Wilkerson said.

In a letter to affected owners obtained by The Associated Press, the SBA said there is no evidence the exposed data have been misused. The informatio­n included names, Social Security numbers, birth dates, financial informatio­n, email addresses and phone numbers.

Business owners have had issues with the disaster loan website before. The site was taken down for maintenanc­e for several hours March 16, and owners could not apply during that time. On March 29, the SBA revised its applicatio­n process for the disaster loans and owners had to reapply. Many learned days or weeks later that they needed to reapply.

“It's frustratin­g that now I have to deal with that too,” said Adam Rammel, coowner of Brewfontai­ne, a restaurant in Bellefonta­ine, Ohio. He got his disaster loan money Tuesday after a month's wait and also got a paycheck protection loan.

The SBA also said it had processed more than 755,000 disaster loan advances, $10,000 each and totaling nearly $3.3 billion as of Monday. The advances are essentiall­y grants. The agency also said it processed nearly 27,000 disaster loans totaling nearly $5.6 billion.

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