February 23, 2023. The consumer advocacy law firms of McCune Law Group, Tycko & Zavareei LLP, and Kelley Uustal, PLC filed a class action complaint against Bank of America on behalf of California-based small businesses that filed for Paycheck Protection Program loans under guidance from the bank. The complaint alleges that Bank of America harmed Happy Puppy LA, Inc., Brandamize, LLC, Aurora Environmental Services, Inc., and other California small businesses by misleading them about their eligibility for fully-forgivable Paycheck Protection Program (PPP) loans.
This class action lawsuit is a powerful example of how consumer advocates are actively defending small business owners against deceptive practices by large financial institutions. The class action complaint alleges that Bank of America’s misrepresentations left some small business owners with thousands of dollars in unexpected debt, when they expected the loan to be fully forgivable.
Under the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act), the federal government established the Paycheck Protection Program (PPP). Small businesses meeting certain criteria could apply for PPP loans to continue paying their workers during the early part of the COVID-19 pandemic. Banks issued the loans, which were forgivable if the small businesses that borrowed funds followed the Small Business Administration’s (SBA) guidelines. The complaint alleges that Bank of America knowingly promoted these loans to businesses that were ultimately ineligible for forgiveness.
Along with co-counsel, Partner Hassan Zavareei is representing California small businesses who were allegedly harmed by Bank of America’s practices.
The consumer advocacy law firms of McCune Law Group, Tycko & Zavareei LLP, and Kelley Uustal, PLC are dedicated to fighting against deceptive practices that leave small businesses with unexpected debt. We hope that class action lawsuits like this will continue to ensure that small businesses have accurate information and the financial resources they need to succeed.