DOJ reaches $30 million deal with PayPal over minority-owned business program
Summary
The U.S. Department of Justice (DOJ) has reached a $30 million deal with PayPal to end an investigation into its investment program aimed at supporting Black and minority-owned businesses. PayPal agreed to waive processing fees on $1 billion in transactions for certain small businesses and will create a new program that does not consider race or national origin.Key Facts
- The DOJ investigated whether PayPal’s investment program violated laws against racial discrimination in lending.
- This program was launched in 2020 to help Black and minority-owned businesses after social unrest following George Floyd’s killing.
- PayPal will waive around $30 million in fees on about $1 billion of transactions for small businesses owned by veterans or involved in farming, manufacturing, or technology.
- PayPal will start a new small business program without using race or national origin as a factor.
- The DOJ did not say PayPal admitted any wrongdoing or violated federal law.
- Acting Attorney General Todd Blanche said the DOJ will enforce laws against discrimination in corporate America.
- PayPal stated it has supported small businesses for more than 20 years and looks forward to the new initiative.
- The investigation was part of a wider effort by the Trump DOJ to examine diversity and inclusion programs.
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