Buffalo, NY (WBEN) Federal prosecutors say The Buffalo Club has agreed to pay $1,500,000 to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA), which it was not eligible to receive.
For decades, the SBA has explained that private clubs and businesses, which limit the number of memberships for any reason other than capacity, or restrict patronage for any reason other than capacity, are not eligible for loans through the SBA. The SBA’s guidance also specifically states that this restriction applies to eligibility for PPP loans.
The PPP was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. The program allowed eligible small businesses to receive loans guaranteed by the federal government.
In March 2021, prosecutors say The Buffalo Club applied for a PPP loan and certified that it was eligible to receive the loan. After receiving the PPP loan, The Buffalo Club sought and received forgiveness of the entire loan amount. The United States contended that The Buffalo Club falsely represented its eligibility to receive the PPP loan because it operated as a private membership club that restricted membership for reasons other than capacity.
Buffalo Club has agreed to pay $1,500,000 to resolve false claims
Buffalo Club has agreed to pay $1,500,000 to resolve false claims
