MILTON, Fla.–An accounting firm here has filed a proposed class action alleging two banks, and perhaps others, violated the intent of Congress when they declined to pay agents such as itself for helping small businesses apply for loans under the SBA’s Paycheck Protection Program from the fees the government paid the banks.
The suit was filed in federal court against Alabama-based ServisFirst Bank and Georgia-based Synovus Trust Co. by Sport & Wheat CPA Pa. The news was first reported by Law360.com.
The suit alleges Congress’ intent was clear when it enacted the CARES Act and the PPP that lenders are to compensate agents from the fees they receive from the SBA.
In a statement to Law360.com, John Wirt of Wirt & Wirt PA, said, "We believe that the issues presented by Sport & Wheat's complaint are vital to the American economy and our national interest. CPAs and other financial advisers are working around the clock assisting their small clients and their banks to provide supporting tax and financial information that is necessary to obtain a PPP loan, which in turn will protect American workers' paychecks.”
‘Un-American’ Activity
Wirt went on to say it is “un-American” not to compensate agents such as CPAs for the work they did or are doing on behalf of clients in applying for the loans.
According to the report, Sport & Wheat have reserved the right to name other lenders that, though they have not yet refused to pay, “it suspects will avoid compensating agents based on restrictions they placed on PPP loan applications.”
Under the SBA's rules, a PPP agent can be an accountant, an attorney, a consultant, someone who prepares a business' application and is employed and compensated by the applicant, someone who assists a lender with administering or litigating SBA loans, a loan broker, or "any other individual or entity representing an applicant by conducting business with the SBA," the complaint reads, according to Law360.com.