So far, this outstrips all other lenders in 2021, and is more than the total number of PPP loans made by Bank of America, PNC Bank, TD Bank, and Wells Fargo combined, according to the complaint.
In 2021, after the SBA increased its fee rates, Prestamos processed nearly 500,000 PPP loans through May 31, 2021. In 2020, Prestamos processed nearly 1,000 PPP loans, reportedly receiving $1.3 million in fees from the SBA, according to court documents. Prestamos Allegedly Used PPP Loans to Make Itself Money InsteadĪs an authorized PPP lender, Prestamos was entitled to receive fees from the SBA for each PPP loan it processed. Unfortunately, despite its designation as a Community Development Financial Institution (CDFI), which indicates its dedication to “helping economic growth in underserved areas,” Prestamos failed to follow through on many small business loans it processed. Under PPP loan provisions, Prestamos should have funded these loans within 10 days of SBA approval. Many other borrowers have complained about not receiving their due funds from Prestamos on the Better Business Bureau’s website and various social media sites. Marshall even checked with her local SBA office about the loan the SBA had information of her loan, its approval, and alleged disbursement, although she still hadn’t received the money.
Marshall, Pronsky, and Townsend each received Small Business Association (SBA) approval on their PPP loan applications and a promissory note regarding the loans.ĭespite properly completing, signing, and submitting the required loan documents and multiple attempts to obtain the loan proceeds, they never received their loan funds, says the class action lawsuit. Marshall, Pronsky, and Townsend seek to represent a national Class of persons and entities in the US who, in 2021, timely applied for PPP loans with Prestamos, but did not receive loan proceeds despite approval, as well as a similar California subclass. The class action lawsuit argues that Prestamos’s failure to fund these Small Business Association-approved PPP loans directly harmed Marshall’s in-home healthcare business, Pronsky’s barbeque catering business, and Townsend’s hair care products business.
0 kommentar(er)
