3 Bay Area businesses fined tens of thousands of dollars for PPP loan fraud
SAN FRANCISCO (KGO) -- Three Bay Area companies have agreed to pay thousands of dollars to settle allegations that they abused the Paycheck Protection Program during the pandemic.
La Baguette, which runs a bakery in Palo Alto, has agreed to pay $430,000. In Santa Clara, Dynamic Integrated Solutions Incorporated, an industrial equipment supplier, will pay $50,000 in civil penalties. Also paying $50,000 Priority Acquisitions Incorporated, a licensed general contractor based in Castro Valley.
The three companies are accused of getting duplicate PPP loans, then having the loans forgiven.
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Each is also paying back the original loan amount.
No wrongdoing was proved, but the companies all agreed to settle the allegations against them. The whistleblower who raised concerns is getting $80,000 as part of the settlements.
Congress started the Paycheck Protection Program in March 2020 to provide small businesses loans so they could continue to pay their employees while business was slow or stopped during shelter-in-place orders.
Today, the House Oversight Committee held its first public hearing on COVID-19 fraud.
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