Regions Bank to pay nearly $5 million in DOJ settlement over COVID loan program
Regions Bank agreed to pay $4.9 million to the DOJ for allegedly forgiving an ineligible PPP loan.Summary
Regions Bank has agreed to pay a $4.9 million settlement to the Department of Justice. The DOJ alleged that Regions forgave a customer's Paycheck Protection Program (PPP) loan in August 2021, even though the loan was not eligible for forgiveness. The PPP was created by Congress in March 2020 to provide federally guaranteed loans to small businesses impacted by the COVID-19 pandemic shutdown. The loans were administered through the U.S. Small Business Administration (SBA), allowing private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness if they used the money on employee payroll and other eligible expenses. Assistant Attorney General Brett A. Shumate stated that the DOJ is committed to holding PPP lenders accountable for failing to comply with applicable program requirements. Regions facilitated approximately 75,000 PPP loans and stated in a press release that it has settled to close this chapter, noting that it is proud of its record supporting small businesses and that this matter involves only one specific loan from that total.
(Source：Alabama Local News)