loans

Billionaire who paid off Morehouse student loans: I still experience racism

Netflix (NFLX) CEO Reed Hastings and his wife Patty Quillin are committing $120 million to the United Negro College Fund and historically black higher education institutions Spelman College and Morehouse College. The donation, the largest of its kind, was partly inspired by Robert F. Smith, CEO and chairman of Vista Equity Partners, who last year announced that he would pay off the student debt of about 400 Morehouse College students.  

Smith joined Yahoo Finance to discuss the Hastings donation, education inequality, and corporate America’s push for diversity.

“I’m encouraged by the fact that we’re seeing business leaders like Reed and Patty saying, listen, we are going to do something about it. You know, we have centuries of systemic racism and it has been playing out in the form of educational disparities, health care disparities, and economic disparities. … [It’s a] dynamic that we’re really facing as an urgent crisis around

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ACLU sues to stop SBA from denying PPP loans to people with criminal records

Several civil rights groups are filing a lawsuit to stop the Small Business Administration from denying Paycheck Protection loans from people with criminal histories. The American Civil Liberties Union, the Public Interest Law Center and Washington Lawyers Committee filed the suit on June 16. 

The groups argue the “arbitrary” and “unlawful” rules shut out many small business owners with criminal records, and disproportionately impact people of color.  

“This really comes at a very trying time and a time when these same communities have been the most affected by COVID. So we are fighting to ensure that all businesses are able to access the support that’s been provided by the federal government ” said ReNika Moore, Director of the ACLU’s Racial Justice Program, in an interview with Yahoo Finance. “We don’t understand the exclusions that the SBA has imposed.”

The groups filed the suit on behalf of Defy Ventures, a nonprofit

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The case against more transparency for coronavirus relief loans

Transparency of the Paycheck Protection Program has been a steadily growing issue. Senate Minority Leader Chuck Schumer announced legislation in May to mandate that the agency release the names of every company that got a loan.

Even Republicans were pushing for more information and were optimistic they would get it. “Bottom line is, we’re going to know one way or another who got this money,” Senate Small Business Committee Chairman Marco Rubio (R-FL) said in April.

That appears to no longer be the case.

Treasury Secretary Steven Mnuchin surprised Congress last week when he said that the names of borrowers wouldn’t be publicly released after all. He said it is “confidential information” in an appearance before the Senate Small Business Committee.

Jovita Carranza, who oversees the Paycheck Protection Program, testifies alongside Treasury Secretary Steven Mnuchin, right, on June 10. (Kevin Dietsch – Pool/Getty Images)

Back in March, however, Mnuchin

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Coronavirus oversight panel Democrats ask banks for info, docs on PPP loans

Democratic members of the Select Subcommittee on the Coronavirus Crisis are asking the Treasury Department, Small Business Administration and eight national banks to turn over documents and information about Paycheck Protection Program loan distribution.

The lawmakers sent letters to the Treasury Secretary Steven Mnuchin, SBA Administrator Jovita Carranza and the CEOs of JPMorgan Chase, Wells Fargo, Citigroup, Santander, U.S. Bancorp, Bank of America, Truist and PNC on Monday.

The committee said it’s investigating whether the program designed to keep small businesses afloat during the pandemic has favored large, well-funded companies over small businesses in underserved communities.

Media reports indicate that some large lenders apparently created a two-tier system for processing PPP loan applications. The banks’ wealthiest clients had access to a personalized application process that ensured their applications were processed first. Other applicants had to use poor-performing electronic portals, faced significant processing delays, and sometimes needed to find another

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Documents show chaos over whether Dreamers qualify for FHA loans

Since 2012, undocumented immigrants called Dreamers have received deferred deportation, work permits and — at one time — federally-backed mortgages, which have lower credit score and downpayment requirements for potential homebuyers.

The Deferred Action for Childhood Arrivals (DACA) program gives protections to about 800,000 children who grew up in the United States without immigration documentation. Major U.S. lenders, including Wells Fargo, assumed that these Dreamers qualified as lawful U.S. residents and granted them federally-backed mortgages (FHA loans). 

But as early as 2018, the U.S. Department of Housing and Urban Development started telling lenders that Dreamers have never been eligible for FHA loans. The communication that ensued was confusing, contradictory and even misleading, according to a complaint filed on June 9 by Rep. Pete Aguilar (D-Calif.), Senator Bob Menendez (D-N.J.) and Rep. Juan Vargas (D-Calif.).

“It was an administrative trainwreck — and yet another example of what happens when the Trump

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