Overview
- PayPal reached a settlement with the Justice Department that ends a probe into its 2020 Economic Opportunity Fund without a finding of liability.
- The company will waive about $30 million in processing fees by covering charges on $1 billion in small-business transactions.
- PayPal will launch a Small Business Initiative that drops race or national-origin criteria and targets veteran-owned firms and businesses in farming, manufacturing, and technology.
- The agreement requires a dedicated program director, employee training on the Equal Credit Opportunity Act, a needs assessment, and regular plans and reports to the government.
- The DOJ framed race-based aid as discriminatory and preserved enforcement rights, a stance that guides companies to design programs around sectors or services rather than demographics.