Four non-profit organizations have agreed to pay over $3 million to settle allegations of improperly obtaining Paycheck Protection Program (PPP) loans.
The U.S. Attorney’s Office for the District of Columbia announced the settlements, which involve claims that the organizations falsely certified their eligibility for the loans.
These allegations stem from the regulations outlined in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020 to provide financial relief during the COVID-19 pandemic.
The CARES Act authorized billions in potentially forgivable loans to support small businesses and other entities in maintaining payroll and covering business expenses. However, it imposed strict eligibility criteria. Notably, nonprofit organizations classified under Section 501(c)(4) of the Internal Revenue Code were ineligible for PPP loans. Additionally, entities primarily involved in political or lobbying activities, including those self-identified as
4 nonprofits to pay $3 million over PPP loan misuse in settlement with DC US Attorney
