Fabric Cutting Machines
Zund America, Inc.Information and Alerts
Service Area
- Milwaukee County, WI
Alert Details
This business has 1 alert.
Government Actions
USA v. Zund America Inc
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
United States Attorney for the Eastern District of Wisconsin, announced that on December 3, 2024, Zund America, Inc., a corporation located in Oak Creek, Wisconsin, agreed to pay $2,300,825 to resolve allegations that it violated the False Claims Act by submitting false claims to obtain a Paycheck Protection Program (PPP) loan for which it was not eligible.
Congress created the PPP in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible businesses could receive loans guaranteed by the SBA and, if the business spent the loan proceeds on qualified expenses, SBA would repay the loan and any accrued interest on the borrower’s behalf. In December 2020, Congress authorized certain borrowers who received an earlier PPP loan to obtain an additional “second-draw” loan. The second-draw loan program included additional eligibility requirements. Under the second-draw loan rules, for a company to be deemed a small business eligible for a second loan, the company, together with any corporate affiliates, had to employee 300 or few individuals.
In February 2021, Zund America received a second-draw PPP loan, which the SBA later repaid. The United States alleges that Zund America was not eligible for this loan because Zund America and its affiliates had more than 300 employees.
“Congress created the PPP to help small businesses and their employees survive the COVID-19 pandemic,” said U.S. Attorney Haanstad. “To make funds available as quickly as possible and save jobs, Congress and the SBA trusted companies to certify that they complied with the eligibility rules. Unfortunately, Zund America did not fulfill its obligations, and instead submitted false information to obtain its second-draw loan. This settlement requires Zund America to repay the SBA plus a substantial penalty.”
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