A Rochester-based company will pay $1.8 million to resolve allegations that it improperly received a federal Paycheck Protection Program (PPP) loan during the COVID-19 pandemic.
Durst Image Technology US LLC allegedly violated eligibility rules by securing a loan intended for small businesses, despite being part of a much larger international corporation. The company has agreed to the settlement without admitting liability.
Company exceeded employee limit for second PPP loan
The PPP, created in March 2020, offered forgivable loans to help small businesses survive pandemic-related disruptions. But strict size limits were in place — particularly for second-draw loans, which were restricted to businesses with 300 or fewer employees, including those employed by foreign affiliates.
According to federal prosecutors, Durst obtained a second-draw PPP loan in 2021 while being a wholly owned subsidiary of Durst Group AG, an Italy-based company with several global branches. Together, Durst and its affiliates employed more than 300 people, making them ineligible for the funds they received…