The United States Attorney’s Office for the Middle District of Pennsylvania announced that ID Logistics US Inc. has agreed to pay $2,362,360 to resolve allegations that it improperly obtained a Paycheck Protection Program loan from the U.S. Small Business Administration for which it was not eligible.

The Coronavirus Aid, Relief, and Economic Security Act was a federal law enacted in or about March 2020 designed to provide emergency financial assistance to millions of Americans suffering economic effects caused by the COVID-19 pandemic.

One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through a program referred to as the Paycheck Protection Program. PPP loans were guaranteed by the SBA and, if the loan proceeds were used for eligible expenses, the SBA would forgive the loan balance and accrued interest.

To obtain a PPP loan, a qualifying business had to submit a PPP loan application to an authorized lender. The PPP loan application required the business, through its authorized representative, to acknowledge the PPP rules and make certain affirmative certifications that the applicant was eligible to obtain a PPP loan. Whether an applicant qualified as a small business was determined, in part, by assessing the number of employees of the business, including any domestic and foreign affiliates.

IDUSA is a subsidiary of ID Logistics Group SA, a French company founded in 2001 that has, in addition to IDUSA, at least 15 other affiliated companies around the world.

According to an internet search the company has facilities in White Haven and Bethlehem.

According to the United States Attorney Brian D. Miller, IDUSA submitted an application for a PPP loan certifying that, together with its affiliates, it had fewer than 500 employees, when, with affiliate entities counted, it had more than 500 employees and was therefore not eligible for the PPP loan.

Once IDUSA was made aware of the investigation, it fully cooperated with the United States to resolve the matter.