Banks Fast-Tracked Large PPP Loans to Max Out Fees, Suits Allege (2)

Bank of America, Chase Bank, US Bank, and Wells Fargo moved larger borrowers to the front of the line of a federal small business lending program in order to maximize their origination fees on the loans, four class actions filed in California allege.

The suits allege the banks violated the California Unfair Competition Law by encouraging small business applicants to hurry to apply for loans through the $349 billion federal Paycheck Protection Program, which the banks said would be processed on a first-come, first-served basis, according to the complaints.

“Thousands of small businesses that were entitled to loans under the ...