A handful of customers have reported they were also funded by another institution as well. "We have funded more than 239,000 PPP loans. There were more than 1.6 million loans approved in the first round of funding.Ĭhase Bank acknowledged it was aware of the duplicate funding issue. The SBA has approved more than 2.2 million loans worth more than $175 billion of the total $310 billion that Congress approved in the latest coronavirus relief package. I didn’t know where I was in the pecking order in terms of getting funded, so I decided to go through somebody else as a backup," said a business owner in Indiana who wished to remain anonymous but ultimately got duplicate loans of $150,000 from both Chase and PayPal. "I lost all faith in Chase being able to come through. Several small business owners reached out to members of Congress after they did not receive funding in the first round and were directed to apply again through a smaller community bank. PayPal also clearly stated in guidance on its website that any current applications do not prevent borrowers from applying somewhere else. (Screen capture)Īfter the first round of the government’s nearly $350 billion loan program was depleted in just a matter of days, many small business owners say they were encouraged to apply with multiple lenders to increase their chances of receiving money in the second round.Ĭhase Bank sent out an email to borrowers after the program ran out of funding, suggesting that they may want to apply for the program elsewhere. With the way Chase, PayPal, and I think Loan Source did it, you did not have a chance to stop it.”Īn email from Chase Bank notifying a business loan applicant that their loan request was approved by the SBA. "Some of the banks, like Bank of America, they sent the promissory note afterwards, so if you’ve been funded already, you have a chance to tell them and reject the funding. They are following the same law, but if you and I read the same paragraph, we are going to come to a different interpretation," Zapko said. "All the lenders had different processes and had different forms. ![]() ![]() However, it prevented small business owners from being able to accept or reject the funding before it hit their accounts. This step in the process was designed to get the money out quickly. In both Chase and PayPal applications for the program, small business owners were required to sign a promissory or direct-debit note before the loan was approved and disbursed. The same situation has played out with other applicants, who were notified that their loans had been approved and deposited by different lenders almost simultaneously. PPP policies from Chase Bank and PayPal to loan applicants suggest applying with another lender. "We thought we would get guidance on this in the next 48 hours and figure out how to click a button and say, 'Duplicate funds received in error, return please.' But that hasn’t happened." "We saw the wires pending, and we were thinking it was going to get halted at some point, and then the wires settled," she told Spectrum News. Rita Zapko, an enrolled agent with Devlin Financial who works as a small business and tax consultant, discovered the funding issue with several of her small business clients. Spectrum News has independently verified at least five cases in which borrowers discovered that duplicate loans were direct-deposited into their bank accounts last Friday after they applied for the Paycheck Protection Program through Chase or PayPal. ![]() Business owners waiting on guidance on what to do with extra money.Some banks required direct deposit multiple banks sent money, owners say.They were encouraged to reapply with different bank in 2nd round.Several small business owners didn't get money from 1st round of PPP.
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