BUFFALO, N.Y. (WKBW) — A company in Lackawanna has agreed to pay $1.5 million to settle allegations claiming it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA).
According to the U.S. Attorney's Office, Welded Tube obtained a forgiven PPP loan it was not eligible for because it had exceeded the size restrictions for a second-draw PPP loan.
A PPP loan gave emergency financial assistance to small businesses during the COVID-19 pandemic. To receive a second-draw PPP loan, businesses were required to have 300 or fewer employees.
In 2021, Welded Tube, along with its Canadian parent company and related businesses, had more than 300 employees. Because of that, officials said they were not eligible for the loan.
“We continue to work tirelessly to recover taxpayer dollars that were improperly obtained by ineligible entities. Through our affirmative civil enforcement efforts, we recovered over $10 million during the 2026 fiscal year related to PPP fraud."
