Genesee Valley Club to pay $1.05M to settle federal case

The Genesee Valley Club has agreed to pay $1.05 million to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA), which it was not eligible to receive.

The PPP loan program, enacted in March 2020, provided emergency financial assistance to small businesses during the COVID-19 pandemic. The program allowed eligible small businesses to receive loans guaranteed by the federal government.

Private clubs that limited memberships for any reason other than capacity, or restrict patronage for any reason other than capacity, were not eligible for PPP loans, according to the office of the U.S. Attorney for the Western District of New York.

In May 2021, Genesee Valley Club applied for a PPP loan and certified that it was eligible to receive the loan. After receiving the PPP loan, Genesee Valley Club sought and received forgiveness of the entire loan amount, according to the U.S. Attorney.

The government contends that Genesee Valley Club falsely represented its eligibility because it operated as a private club that restricted membership for reasons other than capacity.

“The claims resolved by the settlement are allegations only; there has been no determination or admission of liability,” the office of the U.S. Attorney stated in a news release.