News & Analysis as of

CARES Act FinTech Paycheck Protection Program (PPP)

Buchalter

PPP Lender Liability, Enforcement, & Fintech Challenges

Buchalter on

The Paycheck Protection Program (“PPP”) emerged as a lifeline for small businesses grappling with the unprecedented challenges of the COVID-19 pandemic. Lenders navigated a landscape of regulations that Congress quickly...more

Polsinelli

Screening Failures Caused PPP Fraud

Polsinelli on

On December 1, 2022, the House Select Subcommittee on the Coronavirus Crisis released a staff report describing the poor performance of the financial technology companies that took a prominent role in administering the...more

Fox Rothschild LLP

House Subcommittee Singles Out Fintech Companies, Government Officials and PPP Lenders for Roles in COVID-19 Related Fraud

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The House Select Subcommittee on the Coronavirus Crisis, chaired by Rep. James E. Clyburn, released the final report on its investigation into the use and distribution of $5 trillion in federal pandemic-related aid,...more

Wiley Rein LLP

New Congressional Report Raises Possibility of False Claims Act Scrutiny for Fintech Companies Involved In PPP Loans

Wiley Rein LLP on

A just-issued Congressional staff report raised concerns that certain financial technology companies (fintechs) were involved in processing improper loans through the Paycheck Protection Program (PPP) and recommended, among...more

Bilzin Sumberg

Fintechs Face DOJ, House Scrutiny Over PPP Lending

Bilzin Sumberg on

In a June 3, 2022 court filing, Kabbage, Inc. (doing business as KServicing), a fintech lender, disclosed that it is under investigation by the U.S. Department of Justice (“DOJ”) under the False Claims Act. The investigation,...more

Sheppard Mullin Richter & Hampton LLP

DOJ Investigating FinTech Over PPP Loans

On June 3, a federal court filing in the Southern District of Florida by an Atlanta-based FinTech company revealed that the small business lender is under DOJ investigation for alleged PPP loan approval practices. According...more

Morrison & Foerster LLP

Enforcement Against COVID-19 Related Fraud: Two-Year Anniversary Update

On the eve of the pandemic’s two-year anniversary, the U.S. Department of Justice (DOJ) released updated statistics on its efforts to combat COVID-19 related fraud and announced the appointment of a director of COVID-19 Fraud...more

WilmerHale

Weekly COVID-19 Oversight & Enforcement Report - June 2021

WilmerHale on

The House Select Subcommittee on the Coronavirus Crisis continues its investigation into PPP fraud. On May 27, the Select Subcommittee turned its focus to FinTech firms and partner banks implicated in Department of Justice...more

Lowenstein Sandler LLP

Paycheck Protection Program: FAQs For Nonprofits - UPDATED March 2021 #2

Lowenstein Sandler LLP on

On December 27, the President signed into law the Consolidated Appropriations Act, 2021. The Act includes a roughly $900 billion COVID-19 relief package, known as the “Economic Aid to Hard-Hit Small Businesses, Nonprofits and...more

Lowenstein Sandler LLP

Paycheck Protection Program: FAQs For Nonprofits - UPDATED March 2021

On December 27, the President signed into law the Consolidated Appropriations Act, 2021. The Act includes a roughly $900 billion COVID-19 relief package, known as the “Economic Aid to Hard-Hit Small Businesses, Nonprofits and...more

Robins Kaplan LLP

Financial Daily Dose 6.22.2020 | Top Story: In Reversal, U.S. Gov’t Will Reveal Details of PPP Loan Recipients

Robins Kaplan LLP on

After weeks of “backlash over a lack of transparency,” the Treasury Department has agreed to make public information detailing “borrower information for recipients of millions of small-business loans through the $660 billion...more

Robins Kaplan LLP

Financial Daily Dose 6.11.2020 | Top Story: Europe to Charge Amazon with Antitrust Violations Over Treatment of Third-Party...

Robins Kaplan LLP on

The European Union’s antitrust authority is reportedly within days of filing charges against Amazon for the company’s “treatment of third-party sellers,” the latest step in a “two-year probe into Amazon’s alleged mistreatment...more

Morgan Lewis - All Things FinReg

Fintechs: PPP Lending Comes with Opportunities and Risks

The US Senate approved an additional $310 billion in funds for the Paycheck Protection Program (PPP) on April 20, and the House of Representatives is expected to approve these additional funds within days. As fintech...more

McGuireWoods LLP

Update – Fintech Lenders Approved to Participate in the Paycheck Protection Program

McGuireWoods LLP on

Fintech companies Intuit, PayPal and Square have officially been approved to participate in the U.S. Small Business Administration’s (SBA) $349 billion Paycheck Protection Program (PPP), which was enacted as part of the CARES...more

Clark Hill PLC

What Access to the Payroll Protection Program Will Mean for Fin-Techs, Online and Alternative Lenders

Clark Hill PLC on

One of the new and unique features to the Payroll Protection Program (PPP) is the authorization by the Treasury Secretary and the Small Business Administration (SBA) Administrator to extend the program to “additional...more

McGuireWoods LLP

The Role of Fintech Lenders in the Paycheck Protection Program

McGuireWoods LLP on

The latest regulations coupled with the Treasury Department guidance have left many scratching their heads as to whether fintech companies will be able to provide small business loans under the recently enacted Paycheck...more

Mayer Brown

Potential for Fintech Lenders and other “Additional Lenders” to enter the SBA Market: What Lenders Need to Know

Mayer Brown on

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. Among other things, the CARES Act creates the “Paycheck Protection Program” (PPP), which provides up to $349 billion...more

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