

Blueacorn contracts with Capital Plus and one other lender and has received “more than $500 million in fees” for its PPP loan facilitation with Capital Plus. “Capital Plus was a small regional lender with less than $40 million in annual revenue, ” prior to the PPP loan program, and is a Texas limited liability company with its principal place of business in Texas.

Calhoun is the CEO of Blueacorn and resides in Scottsdale, Arizona. that helps compile loan application paperwork for the PPP and partners with banks to apply for and secure loans” Id. “Blueacorn is a Wyoming limited liability company with its principal place of business in Wyoming. Womply spent over $268 million developing its website. the smaller PPP loans to the smallest businesses.” Id. Significantly, the website “made it substantially easier and more cost-effective for lenders to process, manage, and track. Womply's website allowed Womply to direct PPP loan applications to lenders and their partners for processing. submit an application to PPP lenders and. an internet portal through which borrowers searching for PPP assistance could. Womply is a technology company incorporated in Delaware that “developed. This dispute involves three parties who agreed to process PPP loans and divide the SBA fees earned from processing these loans. The facts are as alleged by Oto Analytics (“Womply”) in the First Amended Complaint (Doc. These smaller loans are at the core of this case. For loans under $50, 000, lenders received reimbursement from the SBA of the lesser of fifty percent of the PPP loan amount or $2, 5000. In March 2021, Congress authorized a “second draw” of PPP loans and amended the CARES ACT to incentivize lenders to authorize smaller PPP loans. The PPP loan program fell under the Section 7(a) loan program from the Small Business Act, but the CARES Act relaxed many of the conditions for qualification and forgave the loan if sixty percent of the loaned funds covered payroll expenses. In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that authorized the SBA to guarantee loans to businesses with fewer than 500 employees, known as the Paycheck Protection Program (“PPP”). The Small Business Administration (“SBA”) provides financing to small businesses through private “Section 7(a) loans” under the Small Business Act. For the reasons that follow, the Court GRANTS the Blueacorn Defendants' motion and dismisses all claims against Blueacorn and Calhoun WITHOUT PREJUDICE. BOYLE UNITED STATES DISTRICT JUDGEīefore the Court is Defendants Blueacorn and Barry Calhoun (“Calhoun”) (collectively the “Blueacorn Defendants”)'s Motion to Dismiss in Favor of Arbitration and Under Rules 12(b)(2) and 12(b)(6) (Doc. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile.Īs a matter of policy, BBB does not endorse any product, service or business.JANE J. BBB Business Profiles are subject to change at any time. When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.īBB Business Profiles generally cover a three-year reporting period.

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