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Wells Fargo, JPMorgan Among Banks Sued Over SBA Virus Loans

  • Banks prioritized large loan amounts for fees, lawsuits say
  • Small-business owners say they were shut out of SBA program
A person wearing a protective mask is reflected in the window of a temporarily closed Wells Fargo & Co. Bank branch in New York on April 10.
Photographer: Mark Kauzlarich/Bloomberg
Updated on

Wells Fargo & Co., Bank of America Corp., JPMorgan Chase & Co. and US Bancorp were sued by small businesses that accused the lenders of prioritizing large loans distributed as part of the virus rescue package, shutting out the smallest firms that sought money.

The four banks processed applications for the largest loan amounts because they generated the highest fees, rather than processing them on a first-come-first-served basis as the government promised, according to lawsuits filed Sunday in federal court in Los Angeles.