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Florida Cpa Firm Vs Servisfirst Bank

Fed alters rules to allow bank directors to apply for PPP loans

In the Northern District of Florida, an accounting firm filed a class action lawsuit against ServisFirst Bank and financial planning company, Synovus Trust Corporation. The complaint alleges that these financial institutions had violated terms of the CARES Act by failing to pay the accounting firm for its role in preparing PPP applications.

The complaint further asserts that the CARES Act explicitly states that agents, including accountants, attorneys, loan brokers, and similar financial consultants, who help small businesses apply for PPP loans are owed a fee by the lender who then processes the application. The plaintiff accounting firm states that they acted as such an agent for certain clients, only to have the defendants refuse to pay the required fee.

Expert Witnesses In Ppp Class Action Lawsuits

Lawsuits seeking to hold banks accountable for their approach to the Paycheck Protection Program will rely on the assistance of expert witnesses as well. Experts may be needed to explain how the Paycheck Protection Program was intended to be administered, how banks allegedly deviated from those intentions, and how those deviations affected the plaintiffs. Experts in finance, accounting, and lending will be critical to establish the mechanics of banking relationships and lending programs. Experts in the administration of government programs will also be key for exploring the setup and potential errors in the creation of the PPP.

Ppp 2 Years Later: Analyzing The Legacy And Impact Of The $800b Government Relief Program

Lenders and banking industry experts reflect on the lessons learned from the government’s small-business rescue program, and what lies ahead for its participants.

If you ask most bankers to reflect on the early days of the Paycheck Protection Program , theyll most likely describe a hectic period of changing guidelines and frustrating technical glitches.

As the pandemic in early 2020 ushered in nationwide uncertainty around its impact on the economy, bankers scrambled to ready themselves for an influx of applications for PPP, a government relief program designed to save jobs amid widespread lockdowns.

It was truly an emergency response We were literally working around the clock, evenings and weekends to completely stand up a new platform to be able to deliver and really built it on the fly, said Beneficial State Bank CEO Randell Leach, reflecting on the initial rollout of the program in April 2020.

The Oakland, California-based community development financial institution , like many other lenders involved in the program, had to pull staff from their regular roles to help process the loans, which are forgivable if used by businesses to retain workers or for other permissible expenses.

Two years later, lenders, small businesses and banking industry experts continue to reflect on the lessons learned amid the governments small business rescue program, and what lies ahead for the programs participants.

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How To Get A Small Business Loan

Bank of America changes PPP loan restrictions, allowing more to apply

If you want to apply for a small business loan with Bank of America, there are a few documents and pieces of information that you will need to provide to the bank as part of your loan application:

  • Business name and street address
  • How long your business has been located at the current address
  • Business phone number
  • Business Tax ID
  • What kind of business your company does
  • The date was your business established and how long have you owned the business
  • Number of employees
  • Financial data: annual gross sales and net profit
  • Any other small business loans or lines of credit currently owed by the business, including the lender, current balance or credit limit, monthly payments, etc.

Bank of America also requires some personal information from the business owner, controlling managers or guarantors, such as their personal names, addresses, Social Security numbers , personal income, monthly housing payments and more.

Even though your business is taking out the loan, banks will typically want to get a sense of your personal financial stability and creditworthiness. Some small business loans require the business owner to personally guarantee the loan meaning that if your business fails to repay the money, the bank has a right to demand repayment from your personal assets.

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Ppp Demonstrated Whats Possible

The SBA approved 11.8 million forgivable loans as part of PPP, according to data from the agency. For a government-backed program, essentially assembled in eight days amid a global crisis, those figures are remarkable, said Michael Brauneis, managing director and leader of the North American financial services group at consulting firm Protiviti.

PPP came with its flaws, as many lenders and small-business owners expressed frustration navigating changing guidelines and an online portal prone to crashing. But the programs creation over such a short period of time is a testament to the banking industrys capabilities, Brauneis said.

The PPP happened literally in eight days, from the time that the law was passed to when applications opened up, so I do think it was an interesting test case in terms of what’s physically possible, Brauneis said. will probably be used as an example by lenders internally to say, We can be somewhat more aggressive or operate more in an agile framework than we might have been able to in the past.

PPP accelerated the digital transformation of commercial banking, said Chris Hurn, CEO and founder of Fountainhead Commercial Capital, which funded more than $4.72 billion in PPP loans.

People generally don’t go into branches very often anymore. If you’ve been in the branch, it’s kind of like a mausoleum, theres not a lot going on there, Hurn said. So I think PPP certainly accelerated that.

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Music Business Owner On The Hook For $36000 She Can’t Afford After Mixup With Ppp Loan I Feel That I Was Misled’

CHICAGO — A woman who took out a loan trying to save her small business during the pandemic now says that loan could cause her to shut down.

The owner just found out she owes thousands more dollars than she expected.

CBS 2’s Tara Molina is Working for Chicago, helping people navigate these challenging times. She reports that owner says she just can’t afford to pay it all back.

She’s on the hook for $36,000 today. Money she says she doesn’t have, and can’t be forgiven, all because of what she calls bad communication with the bank she turned to for help.

Amy, who wasn’t comfortable sharing her last name, built Yazz Jazz Music and Productions from the ground up.

“My business specializes in providing musicians, DJs, and bands for live events and weddings, social events,” she said.

When the pandemic hit, her business crumbled overnight. Forced to cancel more than 60 events, Amy said she turned to the Small Business Administration for help back in April, applying for a PPP loan through Bank of America.

“I was called by a banker from Bank of America who walked me through my application,” Amy said.

She got about $38,000 from the Paycheck Protection Program money she says she set aside to pay her team through the cancellations.

Amy checked in with Bank of America for months regarding forgiveness of the loan.

Then, the call that led to her call to CBS 2.

Amy claimed the issue of payments to contractors, like her musicians, never came up when she walked through the process.


Ppp Class Action Outlook

Bank Of America Makes Up Own PPP Loan Forgiveness Rules, Hurts Illinois Small Business Person

The Maryland district courts memorandum opinion has set an important precedent for cases attempting to use a similar private cause of action argument. While not a binding ruling outside of Maryland, it does present an initial hurdle for attorneys seeking to bring PPP claims to court.

The Texas case, however, may offer a solution to the problem. While the CARES Act may provide no private cause of action, statutes like the Texas Deceptive Trade Practices Act often do. Many states have such laws, which may provide grounds for arguing that the claim should be allowed to proceed.

A single unified strategy for dealing with PPP claims nationwide may be difficult to achieve. However, PPP claims may have greater viability under state trade laws. The approach taken in each case should be tailored to that states trade practices act and any related precedent.

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Loan Forgiveness Not Coming Easily For Some Ppp Borrowers

Andrew Songs restaurant and karaoke bar is a ghost of what it used to be. The shuttered business in Manhattan still has an outdoor dining structure up and a menu posted by the door. A phone sits on the dusty host stand inside.

After eight years in business, Song shut down Le Midi last summer, during the pandemic. Now, hes left with debt.

The business got nearly $250,000 through the federal Paycheck Protection Program. His lender, Citibank, told him he has to pay back more than $25,000.

Song cant figure out why. Was it something in his application? Did he not follow the programs guidelines? Is he even liable for the money since his business closed?

I couldnt get a clear answer, and no one picks up phone calls, no emails are returned, Song said. It feels like you are dealing with a faceless organization.

More than $790 billion has been given out through the Paycheck Protection Program, the pandemic aid that helped small businesses with payroll costs and more. The promise was that if business owners used the funds correctly, the loans would be fully forgiven.

But so far, 6% of borrowers who have applied for forgiveness have been told they must pay back some portion of their loans, according to the Small Business Administration adding up to more than $27 billion. Meanwhile, half of borrowers have yet to finish the forgiveness process.

And because of that, it was more like a framework was offered than a full, robust program, Anthony said.

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Bank Of America Is Refusing To Forgive Some Ppp Loans In Full Giving Small Businesses Little Recourse

Date Submitted: 12/31/2021 09:33 AM

Average star voting: 5

Summary: Small businesses have been struggling to appeal the obscure decisions by Bank of America to deny them full forgiveness on the loans.

Match with the search results: Bank of America, the second-biggest lender in the Paycheck Protection Program, is refusing to forgive some small business owners’ loans and . read more

Bank Of America Changes Ppp Loan Restrictions Allowing More To Apply

Bank of America changes PPP loan restrictions, allowing more to apply

After getting many complaints, Bank of America has now opened PPP loans to include all of their business account holders.

UPDATE: Friday was the first day small businesses could apply for Paycheck Protection Program loans.

But many complained that Bank of America, the second largest bank in the country, added a stipulation that in order to apply, you must already have a loan or line of credit with them.

In other words, they would only lend to those who already owe them money.

After Steve Noviellos report, the bank has now changed course and changed the wording on their website which eliminates the prior borrowing requirement.

Despite that language which said only borrowers could apply, a bank spokesperson said they were simply prioritizing current borrowers since those loans are faster to process, and that it was the small business administration which required the lending relationship.

That lending relationship was not an SBA requirement. Bank of America has now opened PPP loans to include the rest of their business account holders.



The Small Business Administration’s Payroll Protection Program rolled out Friday.

These are loans that can be forgiven if businesses use the money to do things like retain employees and pay certain expenses.

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Texas Lawyer Vs Frost Bank

In Texas, a lawyer filed a class action suit against Frost Bank. Here, the plaintiff is a lawyer representing his own firm and other small firms similarly situated. The proposed class applied for PPP funding, only to face problems such as loan applications that were not processed before the funding ran out on April 16, 2020.

The complaint also alleges that the defendant violated the Texas Deceptive Trade Practices Act by prioritizing certain loan applications and refusing to process others. The Texas Deceptive Trade Practices Act allows for a private cause of action for plaintiffs. It covers a broad range of false, misleading, or deceptive acts or practices in the conduct of any trade or commerce.

What Constitutes Ppp Loan Fraud

Bank of America received 60K PPP applications, worth about $6B

The uproar associated with the PPP loan process has turned a critical eye on just who has secured these loansand their eligibility. In response, the SBA released additional guidelines on qualifications for receiving loans including business size standards and review protocols for loans over $2 million. The agency also tightened up terms of loan forgivability and repayment schedules. Businesses such as Ruths Chris Steakhouse, the Los Angeles Lakers, and Shake Shack have since voluntarily returned millions in PPP loans.

In a less voluntary instance, two men were arrested in Rhode Island and charged in the first case of PPP fraud. David A. Staveley and David Butziger were charged for seeking $544,000 in PPP loans. The duo falsely claimed to employ employees at four different business locations. There were, in fact, zero employees. The men have been charged with conspiracy to make false statements to influence the SBA and conspiracy to commit bank fraud. Assistant Attorney General Brian A. Benczkowski, who is leading enforcement on this front, stated his team is investigating a number of similar fraud claims in the double digits.

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