The bank agreed to pay a fine after allegedly forgiving an ineligible $4.92 million Paycheck Protection Program loan in 2021.
Regions Financial will pay $4.92 million to resolve allegations it improperly approved forgiveness of a pandemic relief loan under the Small Business Administration’s Paycheck Protection Program. The Justice Department said the loan was ineligible for forgiveness, accusing the bank of unjust enrichment.
Regions, which processed over 75,000 PPP loans during the pandemic, disputed the allegations but chose to settle. The $160.7 billion-asset bank stated it disagreed with the claims but sought to resolve the matter. The case is part of a broader DOJ crackdown on SBA lenders.
The settlement follows a DOJ statement emphasizing accountability for PPP lenders failing to comply with program requirements. No immediate market reaction was reported.