PayPal reaches $30 million DOJ settlement over 2020 program for Black-owned businesses

PayPal will waive $30 million in processing fees for $1 billion in small business transactions as part of a new settlement with the Department of Justice (DOJ) signed on May 12.

The settlement resolves a DOJ investigation into PayPal over a 2020 program that guaranteed a $530 million investment for Black and minority-owned businesses. The government claimed that the program was unlawful under the Equal Credit Opportunity Act, which bars credit discrimination based in part on race or ethnicity.

PayPal will launch a new program for veteran-owned small businesses or those in farming, manufacturing, or technology. However, the settlement stipulates that PayPal admits to no wrongdoing and will not pay a separate fine to the federal government.

“This Department of Justice is delivering on President Trump’s vow to root out illegal DEI from every corner of corporate America,” Acting Attorney General Todd Blanche said in a statement. Despite the Trump administration’s claims, HR Brew has fo...