By James Pruitt– Staff Writer

The interview process should strike a balance. On one hand, employers must vet potential hires fairly and accurately. On the other, questions about race, ethnicity, gender identity, sexual orientation, national identity, family status, age, disability, or even genetics can land a potential employer in hot water, as well as alienate some of the best talent.

The EEOC (https://www.eeoc.gov/laws/types/index.cfm) provides guidelines that offer protection from sensitive situations. While new employers must necessarily find the right “fit,” certain guidelines can keep your organization out of legal and ethical hot water. There are several rules of thumb that can help interviewers avoid murky waters.

Mindfulness is important with personal banter in initial contacts with the potential hire. and relevance is key. The characteristics and circumstances of the employee only really matter in so far as they relate to the job itself and the tasks at hand. Employers should avoid direct questions when other avenues for inquiry are available.  Most importantly, employers should stay frank about which skills and characteristics are necessary for the job itself.

As a guideline to ensuring a fair interview process, certain specific questions can be pinpointed as hazardous to an employer’s relationship with the EEOC. The following seven common interview questions can land prospective employers in hot water.

First:  Interviewers should avoid questions about graduation dates. Some local employers may seep into innocent banter with such a subject, especially with a shared alma mater. However, other employers may use this question for discriminatory purposes. The Age Discrimination in Employment Act (ADEA) prohibits interview questions that seek to discern age. Such questions must be avoided.

Second: Questions about legal troubles must stay relevant. Of course, employers need to ask certain questions to ensure a safe and functional workplace. For example, generally, convictions for fraud are relevant for workers who handle money. However, a past conviction for a low-level drug offense may not be relevant for a cashier or warehouse position. Consider the link between the offense and the actual duties.

Third:  Questions about family can lead an employer down a tricky path. Despite the temptation to slip into personal banter in an initial encounter, questions about marital status or family size can leave an employer at risk for an EEOC challenge.

Fourth:  Interviewers should avoid questions or remarks about company culture that relate to age. This can cast a broad net. Some specifics that commonly relate to company culture involve the prospect of having a boss, medical leave and family issues. Leading questions that may entrap candidates into admitting the responsibilities and burdens of an older worker are best avoided.

Fifth:  If the interviewer notices an accent, this is best kept to oneself. In fact, employers should leave geographical origin out of the interview process in general. Such questions may relate to race or national origin.

Sixth:   Use caution about questions regarding salary history. Certain jurisdictions outright ban questions about current salary, such as New York City, Philadelphia, Massachusetts, Delaware, California, Oregon, and Puerto Rico.

Seventh:  Employers should avoid questions relevant to medical history. Many employers may use such questions to gauge fitness or possible attendance. However, the Americans with Disabilities Act (ADA) renders discrimination based on disability or perceived disability illegal unless relevant to the job. Questions about medication use fit into a similar aura. Such questions are best avoided absent clear concerns that a worker’s health directly impairs their ability to fulfill everyday duties.

Discrimination is not the only danger lurking in the interview process. Unfulfillable promises may land the employer in the courtroom under contract law. To win over a favorite candidate, employers sometimes hide the truth to make a position more attractive. Unfulfillable promises could result in lawsuits for breach of contract. Employers must never make promises they cannot keep. Examples may include promises of benefits, permanent status, and opportunities for advancement within the company. Employers must avoid such promises unless the opportunities for the candidate are genuinely realistic.

Also, employers should use the same set of questions for each candidate. Deviating from a certain template of questions in the interview process could sprout suspicions of favoritism or discrimination. For example, asking only female candidates if they can work long hours could raise eyebrows during a discrimination suit. Tailoring specific questions to specific candidates could also lead to accusations of nepotism, favoritism, or other biases. Whether or not a discrimination suit arises, the image of an unfair hiring process will inevitably harm an employer’s reputation.

In conclusion, common sense should prevail during the hiring process. Interview questions should remain relevant to the job at hand, and the employer should be honest and up-front about the nature of the job and what they can offer the employee. Such transparency is crucial to maintaining an employer’s reputation.

Disclaimer:   VAMBOA, the Veterans and Military Business Owners Association recommends on any legal matter that you consult a licensed attorney.  We are not attorneys and are not providing legal advice.  Please be advised that this article is written from research and is purely informational.   We encourage you to consult an attorney.

*** We hope you enjoyed this excellent article by James Pruitt, our new writer.   Stay tuned for his bio and learn more about James.

By Debbie Gregory.

We hope that you have found the prior article on Business Loan Scams helpful.   It so important to be aware so you and your Small Veteran Owned Business do not fall prey to a scammer.  Remember that scammers often will contact you online or by phone.  Below we will provide you additional types of Business Loan Scams.

• Ghost Investors: You can receive a call about a “potential investor” lined up to provide you huge amounts of funding immediately and asking for a transaction fee.   Keep in mind when anything sounds to good to be true, it usually is a scam.  Ghost investors are more of a con trying to go after those who might be in the market for business loans and/or funding.   The scammer will act as the “agent” for a large investor, foundation, angel investor or fund who wants to give you money and make an investment in your business.

They are not too interested in hearing your plan or ideas but want to collect your private financial information online such as your social security number or tax identification number for your business.   They will say they need this private information to conduct a background check.  They also will try to obtain an advance fee of some type from you.  They want to hook you and then do a double whammy of taking your personal information and obtaining your money in advance fees.   Legitimate investors take a considerable amount of time to investigate you and they do not ask for fees.

• Loan Broker Swindlers: These scammers will promise to connect you with a reputable lender in the role of consultant of sorts.   They want your sensitive information and advance fees.

Yes, there are legitimate loan brokers out there, but the real ones will not ask you to pay upfront for their services.   Most ethical loan brokers work on a commission basis and are not paid their commission until the deal closes.  Please beware of any loan brokers who ask for their fees upfront.  If someone wants to buy your business or make a loan, there is a process and it should not cost you upfront.

• After Financing Business Loan Scams: Stay alert because after you have your loan, there are scammers who will come out of the woodwork.  Below are some of the scams after you obtain your loan:

1. Debt Relief Scam: It usually goes like this: “If you are struggling with loan payments, get out of debt with affordable monthly payments and we guarantee 48-hour approval”.   The target are people who have trouble keeping up with their loan payments.  The scammer often promises to significantly cut your loan payment or forgive all or part of it.  Once again, they will try to obtain your sensitive information and even your bank account info.   Anyone who promises you a “guaranteed approval” is usually not legitimate.  Again, they will try to obtain upfront fees.  If you are struggling with payments, talk with your existing lender and determine if you can revise the loan so the payments are more affordable.
2. Debt Collection Schemes: This is when debt collectors harass you, make threats of arrest and try to use fear to obtain money from you.    Collectors are regulated by law.  At the end of the day, they want to work out a plan with you and are not allowed to make threats.  If you feel threatened, it probably is not a legitimate collector.

There are many ways that hard working small business owners can be tricked by scammers and con artists.  We urge you to be on the lookout for the following:

• Unsolicited Contact
• Non-Traditional Advertising
• Upfront Money Requested
• Lack of a Physical Address
• Generic Email Address
• Guaranteed Approval
• High-Pressure Sales Tactics
• Too Good to be True

If you or someone you know becomes the victim of a business loan scam, below are a list of things you can do:

• Report to the Consumer Financial Protection Bureau (CFPB)
• Call local police
• Report identity theft
• Contact local credit bureaus

We urge you to be on the alert to avoid business loan scams.  As we previously stated, knowledge is power.  Take your time and confirm that you are dealing with legitimate sources.

If you are interested, we invite you to join VAMBOA.   There are not any fees or dues charged to members.  We will also allow members to use the VAMBOA seal on their collateral and website.  If you want to join, below is a link to register:

https://vamboa.org/member-registration

By Debbie Gregory.

VAMBOA, the Veterans and Military Business Owners Association, believes that knowledge is power and will protect you.  For this reason, we are bringing you this two-part article mini- series on Business Loan Scams.  Please be cautious.

As the owner of a small Veteran Owned Business, you need to be on the alert for business scams, especially those related to access to capital and loans.   There have been more scams than ever with the growth of online alternative loans that allow small business owners to access the funds they need.  Unfortunately, this creates opportunities for Internet scammers.   Various surveys have found that almost seventy percent of small businesses feel there is a greater risk of scams now compared to a few years ago.   In 2016, marketplace scams accounted for the loss of $50 billion dollars alone.

Many online and legitimate lenders have been invaluable to small business owners.   However, many hackers are running business loan scams preying on the needs of small business owners for quick and affordable capital.   They attempt to steal your money, personal information, business information by pretending to be legitimate lenders or small business loan brokers.   The good news is that there are ways to identify these business loan scams and avoid them.  If you should fall victim to a scam, you should know how to report it.

Most scammers will attempt to contact you online via email, phone, texts, direct mail, websites or search engine ads.  You must be cautious whenever anyone asks for money, personal information or your business information.  Below are a list of business scams to avoid when applying for financing:

• Advance Fee Scams:  This is when an individual or company promises easy access to low-cost debt in exchange for an upfront payment. It will include terms such as “zero interest, no credit or bad credit works, no fees, etc.”  The scammer may reference the upfront fee as a “processing fee” or a “one-time fee”.  The goal of the scammer is to get your money before approving you for this likely fictitious loan.

Advance Fee Scams are one of the most common and popular scams.  They entice the borrower by promising that anyone can qualify.  Most legitimate lenders have requirements.  The lower one’s credit score, the higher interest they will have to pay in the real world.   Often legitimate lenders do charge some upfront fees such as application fees or fees to do your credit report so you must be careful.

• Peer Lending Scams: Have you ever seen a message on Craigslist, FB Messenger, Reddit or other places that says: “Low-interest loans up to 100K.  Low credit scores and bankruptcy is not a problem”?   Often, these are scams.   There are credible peer-to-peer lenders with thousands of investors who pool together and purchase loans or parts of loans that meet their criteria.   Instead of a bank, think of it as dozens of lenders working collectively.

Typical peer lending scams often resemble advance fee scams.   These peer lending scammers will also ask for some type of upfront fee or they might also be after sensitive personal information.  Beware because they can also steal your identity.  Never ever use a money wiring services for a business loan and never make any payment in advance.

• Funding Kit Scams: Some unscrupulous online loan providers want you to believe that obtaining a business loan is so complicated, you need to pay them to walk you through the process. This is a scam!    The scammers might offer offers to obtain government grants or inside tips or tricks and offer to provide you information for a fee.

All of the information that you need to obtain a loan is easily found online and there are not any fees to use this information.  When you see words such as “free” and government grants”, it is time to run for the heels.    If you have questions that you cannot find online, ethical, and real lenders are more than happy to answer these questions without charging you a fee.  If anyone asks you to pay for information to obtain a grant or loan, it is likely they are trying to scam you.

• Credit Repair Scams: Have you ever heard offers to increase or improve your credit score by at least 100 points in a short timeframe.  Or perhaps it the offer is to wipe out your bad credit, etc.  When you are trying to obtain a small business loan, your credit history is the most important part of your financial record and used by lenders to make qualifying decisions.

You do not need to pay anyone if you want to challenge or dispute something on your credit report.  You can do this yourself and it is free.   Be wary of anyone wanting to charge you upfront fees to improve and remove negative information from your credit report.   Do not feel pressured and keep in mind that there are a multitude of legitimate lenders willing to work with you even if you have a low credit number or a brief credit history.

VAMBOA hopes that our small veteran and military business owners have enjoyed this first article.   Stay tuned for Part 2 with more Business Loan Scams.  We also want to invite you to become a member of VAMBOA.  There are not any fees or dues and you can use our seal on your collateral and website.  If you want to join, please register here:  https://vamboa.org/member-registration/

By Debbie Gregory.

To overcome the economic impact of the COVID-19 pandemic, many small businesses are being forced to seek external funding through alternative funding sources, government grants, and loans from traditional banking institutions.

You may whether small businesses normally applied for loans or is this a new behavior in response to the pandemic?

Earlier this year, Small Biz Ahead surveyed small business owners across the country to learn exactly how the pandemic was affecting their use of both traditional and alternative funding. Here is what the survey found:

Starting a New Business:

Prior to the pandemic, most small business owners were hesitant to use external funding sources.

• Less than 1% used a federal or state grant to start their business.
• 60% of all small business owners used their own personal savings to start or run their businesses.

Running an Established Business:

• 85% of small businesses sought zero external funding in the last three years.
• 28% of small business owners use their personal credit cards to pay for business expenses.
• If the business did need money, they were more likely to seek out traditional funding sources as 41% stated they would go to their main bank first.
• 25% stated that they would simply use credit cards or existing funds.

Does age affect the business owner’s thoughts on external financing?

They found that younger generations tend to be more open to applying for financing or loans though they are still a bit hesitant. However, they do typically turn to friends and family for loans first. The study found that about a third of small business owners between the ages of 18-34 currently use friends and family as their main source to finance their business. This drops dramatically for generations older than 34, just over 10% of 35-44 year olds and less than 2% of 45-54 year olds stated that they seek out loans from friends or family.

What do small business owners look for when selecting a financial provider?

The small business owners surveyed:

• 38% stated that interest rates are the most important factor in choosing where to obtain funding.
• 38% stated that the terms and conditions were the most important factor.
• 34% prefer a financial provider who they know and have a relationship.

Does gender affect where the business owner will look for financing?

The study found that men (38%) are much more likely to view an existing relationships as the most important factor when selecting a financial provider, whereas women (41%) typically go out of their way to look for less expensive funding and lower interest rates.

How Does Age Impact Funding Choices?

There was also a clear divide between the age groups:

• The 18-34 age group favored institutions that offered easy applications,
• The 35-64 age group favored institutions with less expensive loans and more competitive rates
• The 65 and over age group favored institutions that they had a prior financial relationship.

What about alternative funding (such as crowdfunding or peer-to-peer)?

According to the study, alternative financing is not used very often by small business owners in the USA:

• 2% of small businesses have used equity financing.
• 4% have used P2P (peer-to-peer) lending.

However, this is changing. Many small business owners (42%) stated that they were open to the possibility of using alternative financing in the future should the need arise. The 18-34 age group were the most comfortable with alternative financing options:

• More than 10% stated that they have used P2P lending.
• A bit over 5% stated that they have used crowdfunding.
• All in this group stated that they would consider using alternatives to traditional finance in the future.

VAMBOA, the Veterans and Military Small Business Owners Association wants to learn your opinions on financing and small business funding.  Have you needed to turn to external financing to survive the pandemic?   Please let us know by emailing us:

info@vamboa.org

If you are not yet a member of VAMBOA, we invite you to join.  There are not any fees or dues and you may use our seal on your collateral and website.   Below is a link to register to become a VAMBOA member:

https://vamboa.org/member-registration

By Debbie Gregory.

A data breech can cost companies billions of dollars in damages if the hackers are able to extract sensitive information.  These items may include credit and debit card numbers or social security numbers. The damage is also not limited to monetary costs.  There is also the negative press, drops in company productivity as everyone scrambles to handle the crisis as well as a dip in consumer confidence and trusting the company. These data breeches happen all the time to large corporations that employ very skilled cybersecurity teams and take all types of high-level precautions.  What this means is that small businesses are even more vulnerable and easy prey for hackers.  This article will provide you information on how to protect your small business from security risks like this.

Why are small businesses a hacker’s favorite target?

When it comes to easily grabbed data, a small business is the perfect prey. Small businesses typically lack strong security measures as well as the staff capable of handling hacking intrusions.

Most small business owners don’t make it a priority to:

• Monitor their server networks and data
• Ensure their Wi-Fi is secure
• Hire a true IT specialist to keep watch
• Learn about and train their employees in cybersecurity

Small business owners have a lot on their plate and cybersecurity tends to get pushed aside since most people assume that getting hacked will not happen to them. However, ensuring your company data as well as your customer data is secure, is essential for every business. According to recent reports, 60% of small businesses that had suffered a data theft were forced to close their doors within six months of the breech.

The Top 3 Security Mistakes Made by Small Business Owners:  

1.)  Trusting and using public Wi-Fi:

It is extremely tempting to jump on free Wi-Fi and work or catch up while in a coffee shop, restaurant, or public venue. However, hackers often go to these places and setup their own free public Wi-Fi hotspots to catch the unwary.  Logging into their “free” Wi-Fi provides them immediate access to the devices that you connect. Even logging in to the right network, public Wi-Fi offers little to no real security from savvy hackers.  Do not use unknown networks so you can protect yourself and your data.

2.) Not using and enforcing strong password standards

Strong passwords are incredibly important for every aspect of your life and business. This is the one area where  most people and small business owners make the most mistakes. Remembering complicated passwords can be challenging but it is worth the effort.

These password practices are not strong enough to withstand a password-related attack:

• Less than eight characters in length
• A lack of various letter cases, numbers, and special symbols – meaning not alphanumeric
• Allowing the use of the same password for multiple platforms and/or applications

Every password used by anyone at your business should be alphanumeric, longer than 8 characters in length, and only used once. You should also regularly change your passwords and utilize 2-factor authentication whenever it is available to use.

3.) Not having and enforcing a clear BOYD (Bring Your Own Device) policy:

Lots of businesses allow their employees to bring in their own electronics or mobile devices. Doing so has a lot of clear benefits for the company including cost savings and allowing your employees to be comfortable with the devices.

However, you need to have clear BYOD policies in place that include guidelines that spell out how employees can handle software updates, IT support, encrypted data options, or when and where employee-owned devices can be used for work. If you do not have such a policy, get on it ASAP! You are leaving your business very vulnerable to a data breech.

We advise you to be vigilant. There are many things that you need to do to protect your business from a hacker. However, the risks are simply too great to ignore proper cybersecurity.

If you are not already a member of VAMBOA, the Veterans and Military Business Owners Association, we invite you to join.  There are not any dues or fees and members can proudly display the VAMBOA seal for their collateral and website.  Below is a link to register for membership:

https://vamboa.org/member-registration