None
EN
Embattled Unions to Pay Feds $3.85 Million Over Pandemic Loans
['Claudia Irizarry Aponte', 'More Claudia Irizarry Aponte', 'Senior Reporter']
THE CITY – NYC News
The Justice Department announced a $3.85 million settlement with an embattled union and several of its affiliates over allegations they improperly pocketed millions in COVID-era hardship funds.
The unions unlocked more than $3.3 million in federal loans, which were eventually fully forgiven.
“The Paycheck Protection Program was created to help eligible small businesses weather the economic strain of the pandemic through forgivable loans,” U.S. Attorney Jay Clayton said in a statement.
“The defendants here applied for and received millions of dollars in taxpayer funds for which they were not eligible.
Established by Congress as part of a $5 trillion COVID-19 relief package, the Paycheck Protection Program, administered by the Small Business Administration, offered full forgiveness for eligible borrowers.