Daily Tax Report: State

Banks Seek Treasury, SBA Guidance in Face of PPP Agent Fee Suits

July 31, 2020, 8:14 PM

Banking groups are asking federal regulators’ clarification on when they’re obligated to pay agent fees to companies that helped small businesses seek pandemic relief loans, a request that comes amid a flurry of recent class actions alleging they withheld payments.

The Treasury Department and the Small Business Administration should clarify that a lender is required to pay only if it has a contractual relationship with a small business loan applicant’s agent, the American Bankers Association and state bankers’ associations said in a letter sent Friday.

“Our members have expressed concerns about the line being blurred between an agent providing a...

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