April 24, 2020

The Boston Globe: Warren calls for investigation of small business loan program, saying banks were ‘playing favorites’

The Massachusetts senator and New York Congresswoman Nydia Velazquez allege that small companies were shut out.

Senator Elizabeth Warren and New York Congresswoman Nydia Velazquez are calling on inspectors general to launch an investigation into whether banks issuing federal loans for small businesses were “playing favorites” by giving preferential treatment to bigger customers.

The Democrats, in a letter sent Thursday to Small Business Administration Inspector General Hannibal “Mike” Ware and General Richard Delmar, the Treasury Department’s acting inspector general, called on the watchdogs to review the rollout of the SBA’s $349 billion Paycheck Protection Program to determine whether the agencies “included appropriate protections against waste, fraud, and abuse.”

Citing numerous media reports, Warren and Velazquez, who chairs the Committee on Small Business, called out JP Morgan Chase for favoring large clients by providing loans to its commercial banking customers first, while shutting out most of the bank’s smallest customers.


Read the full article on The Boston Globe website here

By:  Shirley Leung
Source: The Boston Globe