May. 12 at 10:12 PM
The U.S. Department of Justice said it reached an agreement with PayPal to resolve an investigation into a 2020 investment program that had prioritized support for Black-owned and other minority-owned businesses.
Under the settlement, PayPal will launch a new initiative waiving processing fees on up to
$1 billion in transactions (about
$30 million in value) for eligible small businesses, including those owned by veterans or operating in agriculture, manufacturing, or technology sectors. The company will not pay any financial penalty, and the DOJ did not find a violation of equal credit opportunity laws.
PayPal denied any wrongdoing related to its 2020 program, a
$530 million initiative originally designed to support underrepresented communities and improve access to financial resources.
The resolution comes as the company transitions the initiative into a broader small-business support framework without race-based eligibility criteria.
$PYPL