BUFFALO, N.Y. (WIVB) — The Buffalo Club, a private city club that has operated for more than 150 years, has agreed to pay $1.5 million to resolve claims that it falsely represented its eligibility to receive a loan during the COVID-19 pandemic, the U.S. Attorney’s Office said Friday.
According to the U.S. Attorney’s Office, the club applied for and was given Paycheck Protection Program loan, a program that began in March 2020 at the onset of the pandemic. The club applied for the loan in March 2021 and then sought and received forgiveness for the entire loan.
The Small Business Administration has long said that private clubs and businesses that limit memberships for reasons other than capacity are not eligible to receive loans through the government agency. The restriction also applies to the PPP loans. The settlement, however, did not include are determination or admission of liability.
According to ProPublica’s nonprofit explorer, the club made $6.2 million in revenue in 2020, down from $8.5 million in 2019. The club was just shy of $7 million in revenue in 2021 before jumping up back over $8 million in 2022. It has operated as a nonprofit for more than eight decades.
The club, which was founded in 1867 by Millard Fillmore more than a decade after he was President of the United States, works to “cultivate a sense of belonging, inclusion and community like no other in the area.” The club is located on Delaware Avenue.
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