Westmoor Country Club has agreed to pay $1.25 million to resolve claims that it improperly obtained a Paycheck Protection Program (PPP) loan, according to an announcement from the United States Attorney’s Office for the Eastern District of Wisconsin.
The PPP was established in March 2020 as part of a federal effort to provide financial relief during the COVID-19 pandemic. The program allowed eligible small businesses and non-profits to receive loans guaranteed by the U.S. Small Business Administration (SBA), with the possibility of loan forgiveness if funds were used for qualified expenses.
Under longstanding SBA regulations, private clubs and businesses that limit membership for reasons other than capacity are not eligible for SBA loans, including those under the PPP.
Westmoor Country Club operates as a private country club limited to members only. According to government officials, at the time of its application for both the PPP loan and subsequent loan forgiveness, Westmoor Country Club restricted membership for reasons unrelated to capacity and was therefore not eligible for participation in the program.
SBA General Counsel Wendell Davis commented on the resolution: “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other federal law enforcement agencies to recover the product of this fraud as well as penalties.”
Assistant United States Attorney Aaron R. Wegrzyn represented the government in coordination with Kandace Zelaya from the SBA’s Office of Litigation and Office of General Counsel. The settlement resolves allegations against Westmoor Country Club regarding its PPP loan; however, Westmoor does not admit liability, and no court has made any determination regarding liability.
