3 Bay Area businesses fined tens of thousands of dollars for Paycheck Protection Plan loan fraud

San Francisco (KGO) — Three Bay Area companies have agreed to pay thousands of dollars to settle claims of abuse of paycheck protection programs during the pandemic.

Palo Alto bakery operator La Baguette agreed to pay $430,000. In Santa Clara, industrial equipment supplier Dynamic Integrated Solutions Incorporated will pay his $50,000 civil penalty. He also paid $50,000 to Priority Acquisitions Incorporated, a licensed general contractor based in Castro Valley.

The three companies are accused of loan forgiveness after obtaining duplicate PPP loans.

Read more: Investor alert after Bay Area native Sam Bankman-Fried is charged with fraud, conspiracy

Each has also paid back the original loan amount.

No wrongdoing was proven, but the company all agreed to settle the allegations against them.

Congress launched the Paycheck Protection Program in March 2020 to provide loans for small businesses. This allows you to continue paying your employees even if your business slows down or shuts down during stay-at-home orders.

Today, the House Oversight Committee held its first public hearing on COVID-19 fraud.

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