Particle.news

Harvard Club of Boston to Pay $2.47 Million Over Ineligible PPP Loan

Federal prosecutors said private membership clubs were ineligible for PPP loans under SBA guidance.

Overview

  • The Justice Department said the club will pay $2,472,187, including $1,648,125 in restitution plus interest.
  • The private organization admitted it applied for and obtained a PPP loan in May 2021, which the SBA forgave in 2022.
  • Whistleblower Daniel Foster sued under the False Claims Act in May 2025 and will receive about $247,219, with $25,000 going to his attorney.
  • Prosecutors credited the club for producing materials without a subpoena, sharing internal findings, and resolving the matter quickly.
  • Club president Susan L. Kendall told members the application was unintentional, called the rules confusing, said the funds were used for their intended purpose, and outlined a review of compliance protocols.