On May 12, 2020, ImpAcct, LLC, filed a class action lawsuit against a number of defendant-lenders in the United States District Court, District of Colorado (case number 1:20-cv-01344). Plaintiff is represented by the Shuman, Glenn & Stecker, Geragos & Geragos, P.C., Zimmerman Reed LLP, Graylaw Group, Inc., and Dhillon Law Group Inc. firms.

Plaintiff is an accounting company based in Colorado. In the wake of COVID-19, ImpAcct began assisting its clients in applying for PPP loans under the CARES Act. ImpAcct did so with the understanding that it is considered an “Agent” under the applicable SBA regulations. The regulations prohibit an “Agent” from charging borrowers fees related to the application process.  Instead, “Agents” are compensated by the lender out of its lenders fees, which are calculated based on the balance of the financing at the time the PPP loan is ultimately funded.

ImpAcct claims that the lender-defendants failed to comply with the applicable SBA Regulations by failing to pay agents fees.

The complaint asserts causes of action for declaratory relief, violation of the Colorado Consumer Protection Act, unjust enrichment and conversion. The alleged class is composed of all “Agents,” as defined by the SBA Regulations, that facilitated small businesses to receive a PPP loan, met the eligibility criteria, and were approved for funding.