EXCLUSIVE U.S. Justice Department probing Kabbage, fintechs over PPP loan calculations -sources

Ruben Onsu

The U.S. Department of Justice is investigating whether financial technology companies including Atlanta-based Kabbage Inc may have erred while distributing billions of dollars in pandemic aid to struggling small businesses, three people with knowledge of the matter told Reuters.

The investigation, led by the Justice Department’s civil division, is examining whether Kabbage and other fintech companies miscalculated how much aid borrowers were entitled to from the Paycheck Protection Program (PPP) due to confusion over how to account for payroll taxes, the three people said.

A fourth person with direct knowledge of the matter said a number of fintechs were being

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USDA chief Vilsack faces questions over race-based loan forgiveness program

Ruben Onsu

Agriculture Secretary Tom Vilsack faced questions Wednesday about a lawsuit being mounted by white farmers over the Biden administration’s $4 billion race-based loan forgiveness program, pointing out that racial targeting is forbidden under the Constitution.

Vilsack, appearing at the White House daily briefing, was asked about a group of white farmers from Midwestern states who sued over the program, claiming it discriminates against them because of their race.

Farmers from Wisconsin, Minnesota, South Dakota, and Ohio sued Vilsack and the Farm Service Agency.

“They are otherwise eligible for the loan-forgiveness program in ARPA, except for the color of their

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What to do if your PPP loan isn’t forgiven

Ruben Onsu

The Paycheck Protection Program, or PPP, created by the passing of the Coronavirus Aid, Relief, and Economic Security, or CARES Act, in March 2020, has brought much needed relief to the restaurant industry.

The PPP came with a waiver of the affiliation rules set by the U.S. Small Business Administration to ensure more restaurants were able to take advantage of the financial assistance made available by the CARES Act and the additional assistance made available by the December 2020 Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues, or the Economic Aid Act.

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How do I pre-qualify for a home loan?

Ruben Onsu

What does it mean to pre-qualify for a loan?

As you prepare to buy a home, you’ll likely come across the term ‘loan pre-qualification.’ This is the first step in the mortgage process, where a lender provides a ballpark estimate of how much house you can afford. 

Pre-qualification is typically quick and easy — you don’t have to provide documents to the lender, only answer a few short questions.

By getting pre-qualified, you can be sure you’re shopping for homes within your true price range, and not getting your heart set on a home you won’t be able to afford.

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Veteran eligibility and access to VA home loans expanded

Ruben Onsu

New changes passed by Congress and signed by the President have expanded Veteran eligibility and access to VA’s home loan program.

Public Law 116-315, “The Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020”

  1. Broadens the timeframe of Veterans qualifying for the Vietnam War era and has been revised to include those who served from November 1, 1955. The previous date was February 28, 1961.
  2. Authorizes benefit access for those service members and Veterans mobilized to perform full-time National Guard duty for not
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PPP has run out of money for most borrowers. What to know

Ruben Onsu

A small business owner in Chinatown, San Francisco

Source: CNBC

The Paycheck Protection Program has run out of money for most borrowers before its planned May 31 end, the Small Business Administration said.

Going forward, the program will only accept new applications from community financial institutions, which typically serve minority borrowers, as about $8 billion in funding was set aside for such businesses.

The SBA will continue to fund outstanding approved PPP applications from other lenders but won’t accept any new applicants.

The exhaustion of funds, which was announced Tuesday, comes just weeks after the PPP was extended through the

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