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How LA Small Businesses Are Trying To Right The Federal Coronavirus Loan Program
Steve Grandjean struggled to apply for a loan with US Bank, and sent LAist this screenshot on April 6, 2020.
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As the federal government rolls out a second round of federal coronavirus stimulus loans, a Los Angeles-based law firm is suing four major banks over their handling of the initial loans intended to help small businesses.
The suit accuses Wells Fargo, Bank of America, US Bank and JP Morgan Chase of prioritizing large loans and bigger companies, instead of processing Paycheck Protection Program loan applications on a first-come, first-served basis.
Plaintiffs in the lawsuit say they don't anticipate receiving a big payout, but instead are hoping the lawsuit will influence how banks allocate the next rounds of funding.
"For me, it was more about hopefully dissuading the banks from doing this again," said Sabrina Damast, who owns an immigration law firm in L.A. and unsuccessfully applied for a PPP loan.
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