Regions Bank has agreed to pay the United States $4,919,631 to resolve civil liability under the False Claims Act arising from the bank's approval of forgiveness for a Paycheck Protection Program loan that was ineligible for forgiveness [1]. The Department of Justice announced the settlement on May 22, 2026 [1].
The case turns on Regions Bank's role as a PPP lender authorized to process and approve loan forgiveness applications on behalf of the federal government. Under the CARES Act framework, lenders who approved forgiveness for ineligible loans and received reimbursement from the Small Business Administration exposed themselves to False Claims Act liability, which permits the government to recover treble damages and civil penalties for false claims submitted for federal payment [1]. The government's theory is that Regions submitted or caused to be submitted a forgiveness claim that did not meet program eligibility requirements, and that the bank received federal funds it was not entitled to retain [1].
The settlement does not constitute an admission of liability by Regions Bank [1]. The resolution is civil, not criminal, and follows the DOJ's established practice of pursuing financial institutions through the FCA's civil enforcement mechanism rather than through indictment when the conduct involves certification failures in government-backed lending programs. Regions Bank is headquartered in Birmingham, Alabama, and operates one of the larger regional banking networks in the southeastern United States [1].
The Regions settlement is part of the DOJ's sustained post-pandemic enforcement sweep targeting lenders and borrowers who improperly benefited from PPP forgiveness payments. The government disbursed hundreds of billions of dollars in PPP loans and loan forgiveness during 2020 and 2021, and the SBA's inspector general and the DOJ have pursued civil and criminal actions against a wide range of actors since [1]. Lender-side cases, in which banks rather than borrowers are the named defendants, represent a narrower but growing segment of that docket, reflecting the government's view that lender due diligence obligations were a material condition of program participation.
No litigation schedule or court docket has been made public in connection with this resolution. The settlement amount of $4,919,631 reflects a negotiated figure and the matter is closed upon payment [1].