The Harvard Club of Boston will pay $2.4 million to settle a U.S. Department of Justice investigation into allegations that it unlawfully applied for a small business loan during the Covid-19 pandemic.
The case dates back to 2021, when the club applied for and received a Paycheck Protection Program loan, made available under the Coronavirus Aid, Relief, and the Economic Security Act for small businesses facing economic hardship as a result of the pandemic. The club’s loan was later forgiven by the Small Business Administration.
But under blanket SBA rules — which were extended to the PPP program — private clubs with membership requirements are ineligible for loans. The Harvard Club of Boston, which requires a Harvard affiliation to become a member, fits that definition. The club is not directly associated with the University.
The rule violation did not emerge until May 2025, when Daniel Foster sued the club as a whistleblower under the False Claims Act. Foster will receive approximately $247,219 from the settlement, according to the agreement, as well as $25,000 in legal fees.
In an email to members, club president Susan L. Kendall ’81 admitted to submitting an ineligible application for a PPP loan. She maintained, however, that the club did so “unintentionally” and called the eligibility requirements “confusing.” Kendall also confirmed that the club cooperated with the Justice Department’s investigation.
She did not specify how much the club would...
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