Regions Bank Agrees to PPP Settlement
Regions Bank will pay $4.9 million to settle claims that it improperly approved a Paycheck Protection Program loan for forgiveness.Summary
Regions Bank has agreed to pay $4.9 million to settle a civil case involving a Paycheck Protection Program (PPP) loan that federal officials claim should never have been forgiven. The United States Department of Justice announced the settlement on May 22, which resolves allegations that the bank approved forgiveness for a customer's loan despite the borrower not meeting the program's eligibility requirements. The bank, based in Birmingham, Alabama, will pay the funds to resolve the claims, though the settlement indicates there has been no official finding of liability and the bank did not admit to any wrongdoing. This case is part of broader federal reviews of pandemic-era relief programs, which have faced scrutiny regarding fraud and improper lender practices.
(Sourceļ¼Legal Reader)