PayPal has agreed to create a new small business support program and waive processing fees worth $30 million after reaching a settlement with the Justice Department over practices the Trump Administration called “discriminatory” against white-owned small businesses and a form of “illegal DEI.”
The Hill reports that digital payments giant PayPal will launch the Small Business Initiative following a settlement this week with the DOJ that resolved concerns about its 2020 Economic Opportunity Fund, which was specifically designed to support Black- and minority-owned small businesses. PayPal created the Economic Opportunity Fund in 2020 with a $530 million commitment to uplift minority-owned small businesses in the wake of George Floyd’s death.
However, the DOJ characterized the program as discriminatory. PayPal has consistently denied any wrongdoing in its implementation of the fund. Acting Attorney General Todd Blanche said, “This Department of Justice is delivering on President Trump’s vow to root out illegal DEI from every corner of corporate America. American corporations are on notice: you will face our aggressive enforcement if you use race or national origin to discriminate against qualified Americans.”
Under the terms of the settlement agreement, PayPal will waive processing fees on $1 billion worth of transactions, representing a value of approximately $30 million. The new Small Business Initiative will focus on supporting companies that are veteran-owned or engaged in specific industries including farming, manufacturing, or technology.
The settlement requires PayPal to take several specific actions. The company must designate a director to oversee the Small Business Initiative and conduct assessments to determine the needs of American small businesses and how PayPal can most effectively support them. Additionally, PayPal is required to submit plans and proposals for the initiative to the United States government and provide annual reports on the program’s progress and activities.
Notably, PayPal will not be required to pay any monetary penalties to the federal government as part of this settlement. The company was also not found liable for violating the Equal Credit Opportunity Act, which is federal legislation that prohibits creditors from discriminating against applicants based on characteristics including race, color, and national origin.
In a statement provided to The Hill, PayPal emphasized its long history of supporting small businesses. “For more than two decades, PayPal has helped small businesses start, scale, and thrive by expanding access to digital financial tools,” the company stated. “We’re excited to launch the Small Business Initiative to infuse American small businesses with even more economic opportunity,” PayPal added in its statement.
The Trump administration has intensified efforts to eliminate DEI programs from both private sector companies and public sector organizations. This settlement with PayPal aligns with that policy direction, redirecting corporate support programs away from race-based criteria toward other qualifying factors such as veteran status or industry sector.
PayPal has earned a reputation as a woke fintech giant after shutting down the accounts of people it disagrees with, such as those pushing back against the transgender agenda:
Colin Wright, an evolutionary biologist, Substack writer, and a contributing editor to the academic publication Quillette, who frequently criticizes transgender ideology in his writing, has been blacklisted by PayPal, the web’s most widely-used online payment gateway, and Etsy, an e-commerce platform.
It is unclear why PayPal made the decision. Etsy accused Wright of “glorifying hatred or violence towards protected groups,” an accusation Wright called “totally outrageous.”
Wright is a frequent critic of the woke left in his writing, recently publishing an article criticizing sports authorities for allowing biological male Lia Thomas to compete against female swimmers.
“PayPal has notified me that ‘after a review, we have decided to permanently limit your account,’” reported Wright.
“I used PayPal to receive both 1-time and recurring donations from my supporters. When I asked why, they said I needed an attorney to submit a subpoena to find out.”
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PayPal has been at the forefront of efforts to financially blacklist critics of America’s ruling progressive ideology over the past half-decade. Last August, a co-founder of the company, David Sacks, slammed the company for blacklisting customers.
“Kicking people off social media deprives them of the right to speak in our increasingly online world,” wrote Sacks. “Locking them out of the financial economy is worse: It deprives them of the right to make a living.”
Read more at the Hill here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.