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Horn USA, Inc.PPP loanCivil lawsuitFalse Claims ActSmall Business AdministrationDOJEmergency financial assistanceQui tamGRAND RAPIDS, Mich. — In a civil settlement, Horn USA, Inc., a precision tool manufacturing company, has agreed to pay $4.1 million, according to the U.S. Department of Justice (DOJ) Western District of Michigan.
By applying for and receiving a $2 million second-draw Paycheck Protection Program (PPP) loan in January 2021, the U.S. claims Horn USA, Inc. violated the False Claims Act (FCA).
Notably, officials said the loan was forgiven by the Small Business Administration and Horn USA, Inc. did not have to pay it back.
The FCA states that any person who "knowingly submits, or causes to submit, false claims to the government is liable for three times the government’s damages plus a penalty that is linked to inflation," according to the U.S. DOJ Civil Division website.
Following the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, the American Rescue Plan Act (ARPA) and the Small Business Administration (SBA) created a second-draw PPP loan program that allowed businesses with 300 or fewer employees to receive a second loan for "emergency financial assistance."
The U.S. maintains that at the time of the loan, Horn USA, Inc. employed more than 300 people.
“The...
TOPICS: Horn USA, Inc.PPP loanCivil lawsuitFalse Claims ActSmall Business AdministrationDOJEmergency financial assistanceQui tam GRAND RAPIDS, Mich. — In a civil settlement, Horn USA, Inc., a pr...