ALBANY, N.Y. (NEWS10) — A nonprofit corporation, The Rensselaerville Institute (TRI) in Albany, has agreed to pay the US $86,676 in damages and civil penalties according to United States Attorney, Carla B. Freedman. By paying this TRI resolves allegations that it violated the False Claims Act by obtaining an inflated Paycheck Protection Program (PPP) loan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the PPP in March 2020. PPP provided emergent financial assistance to small businesses suffering economic effects caused by COVID-19. If a loan application for PPP was approved, the participating lender funded the loan which was fully guaranteed by the U.S Small Business Association (SBA).
According to the US Attorney’s Office, TRI acknowledged in the settlement agreement that, in early April 2020, its now-former Chief Financial Officer (CFO) provided another now-former TRI official with data and calculations showing that TRI’s “average monthly payroll,” when multiplied by the PPP loan eligibility formula, totaled less than $500,000. That individual applied on TRI’s behalf to an SBA participating lender for a $500,000 PPP loan. Shortly thereafter, the CFO wrote various TRI board members: “I have not received a copy of the PPP application. I am hopeful it was not submitted” because “it would be better if we don’t have a federal loan application floating out there for more money than we were entitled to.”
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