Buffalo Club admits to PPP fraud

Private club agrees to pay $1.5 million to resolve allegations of improperly obtaining COVID-19 relief funds.

Apr. 17, 2026 at 6:36pm

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Federal prosecutors say The Buffalo Club, a private membership club in Buffalo, New York, has agreed to pay $1,500,000 to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA), which it was not eligible to receive.

Why it matters

The PPP program was designed to provide emergency financial assistance to small businesses affected by the COVID-19 pandemic, but private clubs that restrict membership for reasons other than capacity are not eligible. This case highlights the importance of ensuring PPP funds are distributed properly and not misused by ineligible entities.

The details

Prosecutors say The Buffalo Club applied for and received a PPP loan in March 2021, then sought and received forgiveness of the entire loan amount. However, the government contended that The Buffalo Club falsely represented its eligibility because it operates as a private membership club that restricts membership for reasons other than capacity, which makes it ineligible for PPP loans according to SBA guidelines.

  • The Buffalo Club applied for the PPP loan in March 2021.
  • The club received forgiveness of the entire PPP loan amount after receiving the funds.

The players

The Buffalo Club

A private membership club located in Buffalo, New York that has agreed to pay $1.5 million to resolve allegations of improperly obtaining a PPP loan.

U.S. Small Business Administration (SBA)

The federal agency that administers the Paycheck Protection Program (PPP) and has guidelines stating that private clubs that restrict membership for reasons other than capacity are not eligible for PPP loans.

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What’s next

The $1.5 million payment from The Buffalo Club will resolve the allegations against the club, but it's unclear if there will be any further legal action or consequences.

The takeaway

This case underscores the importance of PPP funds being distributed properly and only to eligible small businesses affected by the pandemic. It serves as a warning to other private clubs and organizations that may have improperly obtained PPP loans.