Arbitrator Will Decide Arbitrability of PPP Claims Against Bank of America
January 27, 2021
SAN FRANCISCO — A California federal judge has ruled that arbitrators must determine the arbitrability of claims accusing Bank of America of prioritizing certain businesses over others for Paycheck Protection Program loan processing and submission.
On Jan. 25, Judge Vince Chhabria of the U.S. District Court for the Northern District of California ruled that the claims fall within an arbitration clause included in banking documents signed by the plaintiffs.
To assist businesses during the COVID-19 pandemic, the federal government created the Paycheck Protection Program, through which small businesses could apply for and receive federally guaranteed emergency payroll loans.