Bank of America sued over PPP loan processing for small businesses

CHARLOTTE — Four businesses filed a lawsuit against Charlotte’s Bank of America Corp. on Sunday, criticizing the way it handled loan applications for the Small Business Administration’s Paycheck Protection Program. The suit was filed in federal court in Los Angeles.

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[Coronavirus: Small businesses pushed aside as PPP loans go to big business]

The lawsuit alleges BofA prioritized applications for higher loan amounts because those would generate more origination fees for the bank. The SBA previously said PPP applications would be accepted and processed on a first-come, first-served basis.

A spokesman for BofA says the bank disagrees with the allegations.

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