Legal professionals review documents during a settlement discussion in a corporate meeting room.
PayPal has agreed to a $30 million settlement with the Department of Justice following an investigation into its 2020 “Economic Opportunity Fund.” The settlement addresses concerns that the fund, created to support Black and underrepresented minority businesses, may have violated the Equal Credit Opportunity Act.
Acting Attorney General Todd Blanche stated that the Department of Justice is committed to rooting out illegal Diversity, Equity, and Inclusion (DEI) practices. While the investigation did not find that PayPal violated federal law, the company has agreed to launch a new Small Business Initiative as part of the resolution.
The new initiative will waive processing fees for $1 billion in transactions for American businesses that are veteran-owned or operate in farming, manufacturing, or technology sectors. PayPal will also be required to educate its employees on the Equal Credit Opportunity Act and provide annual reports on the initiative.
A PayPal spokesperson expressed enthusiasm for the Small Business Initiative, highlighting the company’s long-standing commitment to helping small businesses grow through digital financial tools. Assistant Attorney General Harmeet K. Dhillon emphasized that the settlement ensures race and national origin will not be determining factors in which small businesses receive investment and financial support from PayPal.
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