COVID-19 CARES ACT SMALL BUSINESS LOAN DENIALS

COVID-19 CARES ACT SMALL BUSINESS LOAN DENIALS

Ben F. Windham, P.C. is signing up clients who have been turned away from
major financial institutions for applying for the COVID-19 Pandemic Disaster Relief
Loans Coronavirus Aid, Relief, and Economic Security Act, H.R. 748 (“CARES Act”)’s
Paycheck Protection Program (“PPP”) for small businesses. The CARES Act, a $2
trillion stimulus package in response to the COVID-19 pandemic that was signed in
to law on March 27, 2020, includes the PPP, which empowers lenders to make
available as much as $349 billion in government-guaranteed loans to cover eight
weeks of payroll and other expenses. Some large Banks are picking favorites and
not accepting applications from small businesses who do not maintain deposits
with that particular lending institution. This is illegal under law and our firm is
filing Class Action lawsuits in Federal Court to enforce the law.

The purpose and motivation behind these Banks’ discriminatory practices is
transparent – they are prioritizing their balance sheets by supporting preexisting
loans issued by the financial institution through the PPP program at the expense
of small business customers who do not have a lending relationship with the
Bank. These discriminatory practices are abhorrent and in violation of federal
law. In this time of national need, these types of discriminatory practices can only
be described as corporate greed.

Senator Ben Cardin issued the following Statement on Launch of
Paycheck Protection Program:

“I am deeply troubled by reports of financial institutions turning away
small businesses that desperately need capital through the Paycheck
Protection Program. The small business provisions in the CARES
Act were written to get funds into the hands of American small
business owners as quickly as possible so they can keep employees
on payroll and avoid financial ruin while we work to combat COVID-19.
Creating artificial barriers that block businesses from much-needed capital
is redlining by another name. I will continue working with the
administration to ensure that small businesses in every community have
access to the programs created by the CARES Act, including the emergency
EIDL grant program and the Paycheck Protection Program.”

Contact our firm If your small business has been denied access to the PPP
and turned away by a financial institution.

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