As financial institutions begin to make the next round of
Paycheck Protection Program ("PPP") loans under the CARES
Act, some would-be borrowers have begun suing lender financial
institutions alleging the institutions have relied on improper
criteria when making PPP loans, thereby violating the PPP and the
CARES Act.
Some small businesses that applied for PPP loans with various
financial institutions and did not receive the loans before the
initial appropriated funding for PPP loans ran out have filed
purported class action lawsuits against those financial
institutions, alleging that they prioritized or favored large loans
and preexisting client relationships, both in violation of the
CARES Act.
