Biggest Banks “Prioritized” Larger Clients for Stimulus Loans, Lawsuits Say
Class-action lawsuits targeting JPMorgan Chase, Bank of America and Wells Fargo claim the big banks favored larger businesses with Paycheck Protection Program (PPP) funds at the expense of small business employers.
The suits say the banks “prioritized corporate greed” and opted to maximize profits, leaving small businesses out in the cold as PPP funds ran out, according to CBS News. The loans were supposed to be first come, first served, but it appears that the banks moved larger companies to the head of the line.
More than 50 publicly traded companies said that they received more than $250 million in PPP loans — including the owner of restaurant chains Ruth’s Chris Steakhouse, Shake Shack, Pollo Tropical and Potbelly.
“I am getting a growing sense that some of these policies are benefiting those who need it the least at the expense of those who need it the most,” Dean Phillips (D-Minn) said, per CBS News. “A food truck should have equal access to these funds as Shake Shack.”