Kennedale concrete manufacturer pays $1.8 million to settle federal lawsuit, prosecutors say
A Kennedale concrete manufacturer has agreed to pay $1.8 million to settle claims that it accepted a government COVID relief loan it was not eligible for, federal prosecutors said Thursday.
The manufacturer, Speed Fab-Crete Corporation, applied for and received the loan through the Small Business Administration’s Paycheck Protection Program in 2020, according to a news release from the U.S. Attorney’s Office for the Northern District of Texas.
The Paycheck Protection Program (PPP) was created to assist small businesses during the COVID-19 pandemic.
Speed Fab received a loan of $1.17 million in 2020, according to the statement. At the time that the company applied for and received a loan, some of the company’s owners were facing criminal charges, prosecutors said.
The criminal charges made the company ineligible to receive the loan under Small Business Administration rules, according to the news release.
The rules stated that a company was ineligible for PPP funding if any owner of more than 20% of the business’ equity was facing criminal charges, according to the news release.
“This office is committed to finding and recovering PPP funds that were obtained by ineligible recipients during the pandemic,” acting U.S. attorney Chad Meacham said in the news release. “We will continue to investigate and take action as necessary to reclaim those funds on behalf of the American taxpayer.”
