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Various banks like JPMorgan and Wells are sued over PPP loans 

Various banks like JPMorgan and Wells are sued over PPP loans 

Small business owners sue different banks for seeking higher loans amount from PPP. These banks are namely U.S. Bank, JPMorgan Chase, Wells Fargo, and Bank of America. The small business owners claim that the Paycheck Protection Programme (PPP) is unfairly favoring these big banks, and not them.

The lawsuits

On April 20, 2020, the small business owners file four class-action lawsuits in the U.S. District Court. Subsequently, this lawsuit comes under the jurisdiction of the Central District of California.

The lawsuit states that the PPP is reshuffling the funds received from the public for the welfare of the small business owners. Further, it mentions that the authorities of PPP are prioritizing the big banks. And, eventually, the big banks are receiving most of the allocation of the funds.

Moreover, the lawsuit states that the small businesses would have submitted their PPP applications, but they didn’t. It’s because they expect the big banks to be honest about filling their applications.

Further, the plaintiffs even claim that the Small Business Administration (SBA) is responsible for giving suggestions to the banks. Subsequently, the suggestion is about applying for more substantial loans by filing applications for the PPP. And, eventually, the big banks apply for loans worth up to $1,50,000.

 

About the author

Billy Jean

Billy Jean

Still recovering from an awkward band phase as a guitarist who dreamt of world tours, Billy now covers the audio beat, spanning everything from headphones to streaming. He lives in the great state of North Carolina where a good biscuit is the only thing that matters. He's also a Cheez-It expert and a graphic designer on nights and weekends.
Email:billy@pioneertable.com

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