5/5/2023 0 Comments Blue acorn ppp login![]() The case claims CPF, at the direction of Crossroads, “exploited the increased fees” for small loans by agreeing to fund 472,036 PPP loans, totaling over $7.5 billion in proceeds, in 2021. to identify borrowers to whom CPF could offer PPP program loans. Per the case, CPF or Crossroads contracted with startup Blue Acorn PPP, LLC or its affiliate FinCap, Inc. The lawsuit alleges that the defendants, considering the demand for PPP loans of less than $50,000 and the guaranteed fee of at least $2,500 for each loan, seized on an opportunity to generate “enormous amounts” of lender fees by booking small PPP loans. The Economic Aid Act in December 2020 increased fees for loans of less than $50,000 to 50 percent or $2,500, whichever is less, the case adds. Per the suit, certain private lenders, including CPF, were approved by the SBA to process and fund PPP loans, for which they would receive fees from the SBA in return. The Paycheck Protection Program was established under the CARES Act to provide forgivable loans backed by the SBA to small businesses to be used for payroll costs, mortgages, rent and utilities, the case relays. government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 in order to help Americans affected by the pandemic. Despite generating a reported $930 million in PPP fees in 2021, CPF, the lawsuit alleges, failed to actually fund borrowers’ loans after they’d been approved by the Small Business Administration (SBA). have failed to fund approved Paycheck Protection Program (PPP) loans in violation of CPF’s contracts with borrowers.Īccording to the 34-page lawsuit, CPF, a certified community development financial institution that purports to “serv the Hispanic community in the state of Texas,” processed the second-highest number of PPP loans of any lender in 2021 and more than the total number of PPP loans processed by Bank of America, PNC Bank, TD Bank and Wells Fargo combined for that year. Blueacorn saw enormous demand during this period, ultimately supporting 808,000 small business owners / sole proprietors via disbursement of $12.5 billion in SBA PPP funds.īlueacorn’s borrowers were the people who keep our economy running and weave together the fabric of our communities: beauty salon owners, truck drivers who are operating their business off their phone in between stops, our favorite local coffee shops and restaurants that define our neighborhoods, residential construction workers, rideshare or taxi drivers, landscapers, and local delivery workers, among a variety of other professionals.New to ? Read our Newswire DisclaimerĪ proposed class action alleges Capital Plus Financial, LLC and parent company Crossroads Systems, Inc. ![]() Many were also unwilling to lend to individuals altogether.īlueacorn was founded in April 2020 with the singular purpose of advancing the original mission of PPP by democratizing access to loan relief for America’s small businesses, independent contractors, and self-employed workers – groups who are often overlooked by our traditional banking system and could not seek relief through the traditional PPP channels.Īs a fintech lender service provider, Blueacorn partnered with the Small Business Administration (SBA) and CDFIs to facilitate the application for and fulfillment of PPP loans predominantly for businesses and workers who qualified as independent contractors, self-employed individuals, freelancers, and gig workers. However, due to the structure of the program, it became clear that there was a growing divide when it came to loan disbursement, with lenders prioritizing applications for clients who would take out the largest loans and bring in the highest fees. The launch of PPP was met with enormous demand and the program was renewed two times to meet the flood of applications. PPP was designed to be an intentionally untargeted program with limited safeguards in place so as to prioritize reaching those in need as quickly as possible. Given the severity of the threat posed by COVID-19, the government sought to create a program that focused on speed and access. PPP was a cornerstone program of the CARES Act, intended to help employers keep their employees on their payroll by covering up to two months of their payroll expenses with a loan that could be completely forgiven if it was spent in accordance with the program’s guidelines.
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