Major US banks are being accused of prioritizing higher-value loan applications, rather than processing requests on a first-come, first-serve basis
The lawsuits accuse the banks of prioritizing higher-value loan applications, rather than processing the requests on a first-come, first-serve basis — which the PPP intended — leaving thousands of businesses without loan access. PPP funding was within two weeks of being made available, but in the three days before it dried up, banks allegedly processed loan applications for $150,000 at less than twice the rate of larger loans.
The lawsuits claim that the largest loans were front-loaded so that banks could earn higher commissions from the government, which is banks to process loans: Fees range from 5% for a loan under $350,000 to 1% for a loan over $2 million. Though the preferential treatment that banks are allegedly giving to larger loan requests may not be outright illegal, they must be mindful of how their procedures are being perceived. BofA was separately
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
US markets haven't priced in a 'significant second wave' of coronavirus, says Citi Private BankDavid Bailin, chief investment officer at Citi Private Bank, said company earnings could fall by 40% 'across the board' in the second quarter.
Consulte Mais informação »
In Race for Small-Business Loans, Winning Hinged on Where Firms BankThe small businesses that received government aid weren’t always the ones with the greatest needs or the best chances to survive the pandemic.
Consulte Mais informação »
Goldman poaches Bank of America's Fortunati to boost industrials ranks: sourcesGoldman Sachs has snapped up a Bank of America dealmaker to build up its industrials team as it seeks to win more business in one of the sectors hardest-hit by the coronavirus outbreak, three sources told Reuters.
Consulte Mais informação »
Drew McIntyre Challenges Seth Rollins at Money in the Bank on 'WWE Monday Night RAW'More Money in the Bank qualifying matches are going down Monday.
Consulte Mais informação »
Australia central bank sees 'subdued' economic activity through SeptemberAustralia's economy could shrink 'significantly' in the June quarter and remain 'subdued' through September due to the hit from the coronavirus pandemic, minutes of the country's central bank's April 7 policy meeting showed on Tuesday.
Consulte Mais informação »
Treehouse isolation, python masks, farm-to-food bank: News from around our 50 statesAn emergency room doctor in Texas has taken over his kids’ backyard domain as a quarantine hideout, aiming to keep his family safe.
Consulte Mais informação »