U.S. lawmakers probe Kabbage, BlueVine and partner banks over pandemic loans -letters

FILE PHOTO: U.S. President Joe Biden replaces the cap on his pen as he signs the "Paycheck Protection Program (PPP) Extension Act of 2021" into law in the Oval Office at the White House in Washington, U.S., March 30, 2021. REUTERS/Jonathan Ernst/File Photo

WASHINGTON (Reuters) - U.S. lawmakers have opened an investigation into financial technology companies Kabbage Inc and BlueVine and their partner banks for their roles in distributing billions of dollars in pandemic aid to small businesses, according to letters seen by Reuters.

The investigation, due to be announced on Friday, highlights how an unprecedented $780 billion loan program launched by the U.S. government to help companies weather the COVID-19 economic shutdown has led to legal and regulatory woes for lenders.