SAN DIEGO (FOX 5/KUSI) — The 22nd District Agricultural Association (DAA), which operates the Del Mar Fairgrounds, has reached a settlement of $5,664,015 over allegations that it improperly secured a Paycheck Protection Program (PPP) loan during the COVID-19 pandemic. The settlement includes Carlene Moore, the DAA’s chief executive officer, as announced by the Department of Justice.
The DAA received a $4,713,700 PPP loan in May 2020, a financial lifeline intended for small businesses struggling due to the pandemic. However, U.S. authorities argue that the DAA was ineligible for this loan, as it is classified as a government-owned entity. The Small Business Administration (SBA) stipulates that government entities are not eligible for PPP funds, which were designed to assist private businesses facing economic hardships.
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The loan was initially granted based on an application signed by Moore, who certified its accuracy, according to the DOJ. It was later forgiven under another application also submitted by Moore. As a result, the federal government disbursed a total of $4,811,590 to the bank that processed the loan, including interest and fees.