PPP Bank Litigation Tracker

Jones Walker’s PPP Bank Litigation Tracker monitors litigation and regulatory enforcement actions trending across the nation.

Click on highlighted states for more information.

The issues currently trending across the nation include these categories:

Eligibility Restrictions. This category of PPP bank litigation generally involves prospective PPP loan applicants that claim they were unable to apply because of lender-specific policies that restricted PPP eligibility.

Loan Prioritization. This category of PPP bank litigation generally involves PPP loan applicants that claim their loan was denied because of lender-specific policies that prioritized certain PPP loan applications.

Agent Fees. This category of PPP bank litigation generally involves agents that claim banks have unlawfully withheld fees owed to agents for assisting in the PPP application process.

Default on Existing Debt. This category of PPP bank litigation generally involves prospective PPP loan applicants that claim that PPP loans should not constitute new debt that would trigger a default under existing loan agreements.

False Claims Act. Under the False Claims Act (FCA), the DOJ may bring an enforcement action against a party for knowingly or recklessly submitting a false claim for payment to the federal government. The FCA also allows private persons to file suit for violations of the FCA on behalf of the government.

Class Action. Certain categories of PPP bank litigation have been instituted as putative class actions.

Government/Regulatory Actions. Federal and state bank regulatory agencies may take enforcement action against a lender with respect to certain compliance aspects of the PPP program, such as fair lending and Bank Secrecy Act.

The DOJ and Small Business Administration can also take enforcement action against a lender or borrower regarding a PPP loan.

More categories of PPP bank litigation will be added as they continue to develop. 

 

Related Resources

Federal Banking Agencies
CFPB Guidance on Adverse Action Notices for PPP  
OCC Guidance on Documentation of PPP Loans 
FDIC FAQ on PPP
Federal Reserve PPP Liquidity Facility

SBA/Treasury
PPP Rules and Guidance