The Federal Trade Commission (FTC) has obtained a preliminary injunction against Seek Capital, a business financing company accused of misleading entrepreneurs with false promises of small business loans and credit. The ruling, issued by the U.S. District Court for the Central District of California, is an early legal victory for regulators.
According to the FTC’s complaint, Seek Capital promoted itself as a firm that could help small businesses access tailored loans or lines of credit. Instead, the company allegedly charged thousands of dollars in upfront fees while steering clients toward personal credit cards—often unrelated to their original business funding goals. The agency estimates the scheme caused more than $37 million in losses to small business customers.
The preliminary injunction prohibits Seek Capital and its affiliates from making further deceptive marketing claims while the case proceeds. It also blocks them from collecting additional fees or payments from customers affected by the disputed practices.
The case remains ongoing, but the court’s early decision reinforces the FTC’s role in regulating business financing services and signals a willingness to intervene when companies misrepresent what they offer to entrepreneurs.