A consensus is emerging among federal district courts: the Coronavirus Aid, Relief, and Economic Security (CARES) Act does not create an entitlement or private right of action to collect "agent fees" from PPP lenders.

The Jones Walker PPP Bank Litigation and Regulatory Task Force has been monitoring trends in litigation since the implementation of the Paycheck Protection Program (PPP). The Task Force identified PPP agent-fee disputes as a litigation growth area, and reported on the first major decision in agent-fee litigation in August 2020, in which a federal district court in Florida held that the CARES Act and its implementing regulations do not require lenders to pay a portion of the loan processing fees they receive from the Small Business Administration (SBA) to agents that helped borrowers obtain PPP loans. See Sport & Wheat, CPA, PA, No. 20-05425 (N.D. Fla. Aug. 17, 2020. Continue reading >