A California-based company filed a class-action lawsuit against Wells Fargo citing unfair actions against some small businesses seeking government-sponsored coronavirus relief under the Paycheck Protection Program.
In March, the Treasury Department announced the $349 billion forgivable loan plan for small businesses that helps them pay employees during the ongoing COVID-19 crisis. The fund ran out of money on Friday.
The lawsuit filed on behalf of small business owners on Sunday alleges that Wells Fargo unfairly prioritized businesses seeking large loan amounts, while the government’s small business agency has said that PPP loan applications would be processed on a first-come, first-served basis.
The move by Wells Fargo meant that the bank would receive millions more dollars in processing fees, according to the lawsuit.
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