DynPro, Inc., a Raleigh-based IT solutions company, has agreed to pay $2,178,254 to settle claims related to a falsely obtained Paycheck Protection Program (PPP) loan. The U.S. Small Business Administration (SBA) provided these loans to support businesses affected by the COVID-19 pandemic.
The PPP allowed eligible small businesses to receive forgivable loans guaranteed by the SBA. To qualify for a second-draw PPP loan, applicants needed to demonstrate at least a 25% reduction in quarterly gross receipts due to the pandemic.
DynPro's application inaccurately claimed such a reduction between the second quarter of 2019 and the same period in 2020. This misrepresentation made DynPro ineligible for the loan. The company also incorrectly certified that all information and supporting documents were "true and accurate in all material respects."
Despite these inaccuracies, DynPro self-reported its actions to the United States Attorney’s Office and cooperated with their investigation by providing key witnesses and documents.
Acting United States Attorney Daniel P. Bubar announced this resolution as part of a joint effort between the U.S. Attorney’s Office for the Eastern District of North Carolina and the SBA. Assistant U.S. Attorney Andrew Kasper managed the case with help from the SBA’s Office of General Counsel.