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Labor/Employment,
Civil Rights

May 13, 2026

DOJ, PayPal settle probe over minority business investment program

The Justice Department alleged a pandemic-era investment fund for Black- and minority-owned businesses violated federal anti-discrimination law. PayPal denied wrongdoing but agreed to create a new race-neutral small business initiative and provide $30 million in fee waivers.

The Justice Department has reached a settlement with PayPal Inc. ending a federal investigation into the company's pandemic-era investment fund for Black- and minority-owned businesses, which regulators alleged unlawfully considered race in distributing financial benefits.

The agreement requires the San Jose-based payments company to replace its Economic Opportunity Fund with a new Small Business Initiative that uses race-neutral eligibility standards. PayPal also agreed to wa...

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