The U.S. subsidiary of France-based contract logistics provider ID Logistics Group SA has agreed to pay $2.36 million to resolve allegations that it improperly obtained a Paycheck Protection Program loan from the U.S. Small Business Administration during the Covid crisis for which it was not eligible.
ID Logistics US submitted an application for a PPP loan certifying that, together with its affiliates, it had fewer than 500 employees when it actually had more than 500 employees and, therefore, was not eligible for the loan, the U.S. Attorney's Office for the Middle District of Pennsylvania, announced on Tuesday.
The Coronavirus Aid, Relief and Economic Security (CARES) Act in 2020 provided forgivable loans to small businesses for job retention and other expenses through the Paycheck Protection Program. PPP loans were guaranteed by the SBA and, if the loan proceeds were used for eligible expenses, the SBA would forgive the loan balance and accrued interest.
To obtain a PPP loan, a qualifying business had to submit a PPP loan application to an authorized lender. Whether an applicant qualified as a small business was determined, in part, by ******* sing the number of employees of the business, including any domestic and foreign affiliates.
The fraudulent loan application was flagged for authorities by a whistleblower, who will receive $236,200 from the settlement, according to the Department of Justice.
#business #small #eligible
ID Logistics US submitted an application for a PPP loan certifying that, together with its affiliates, it had fewer than 500 employees when it actually had more than 500 employees and, therefore, was not eligible for the loan, the U.S. Attorney's Office for the Middle District of Pennsylvania, announced on Tuesday.
The Coronavirus Aid, Relief and Economic Security (CARES) Act in 2020 provided forgivable loans to small businesses for job retention and other expenses through the Paycheck Protection Program. PPP loans were guaranteed by the SBA and, if the loan proceeds were used for eligible expenses, the SBA would forgive the loan balance and accrued interest.
To obtain a PPP loan, a qualifying business had to submit a PPP loan application to an authorized lender. Whether an applicant qualified as a small business was determined, in part, by ******* sing the number of employees of the business, including any domestic and foreign affiliates.
The fraudulent loan application was flagged for authorities by a whistleblower, who will receive $236,200 from the settlement, according to the Department of Justice.
#business #small #eligible
2 months ago
