FILE PHOTO: Tips, money collected from a customer donation fund and a last paycheck for employees laid off from Farley’s East cafe, that closed due to the financial crisis caused by the coronavirus disease (COVID-19), sits on a counter at the cafe in Oakland, California, U.S. March 18, 2020. Picture taken March 18, 2020. REUTERS/Shannon Stapleton/File Photo
WASHINGTON (Reuters) -The U.S. Department of Justice is investigating whether financial technology companies including Atlanta-based Kabbage Inc may have erred while distributing billions of dollars in pandemic aid to struggling small businesses, three people with knowledge of the matter told Reuters.
The investigation, led by the Justice Department's civil division, is examining whether Kabbage and other fintech companies miscalculated how much aid borrowers were entitled to from the Paycheck Protection Program (PPP) due to confusion over how to account for payroll taxes, the three people said.
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