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Bank of America misled PPP borrowers, lawsuit alleges

March 7, 2023

A class-action lawsuit filed against Bank of America last month claims the bank misrepresented the amount of pandemic aid small business owners were eligible for, leaving firms saddled with unforgivable debt.

Three California-based small businesses — Happy Puppy LA, Brandamize and Aurora Environmental Services — allege the bank marketed and approved Paycheck Protection Program loans to businesses that used their payrolls to employ independent contractors, or 1099 workers.

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