Defense contractor with billions in sales got millions in pandemic loans intended for small business
A military equipment supplier that has been accused of fraudulently misrepresenting its size in order to benefit from privileges associated with being a small business has received a Paycheck Protection Program small business loan worth at least $2 million, public records show.
Atlantic Diving Supply, a Virginia Beach, Va.-based reseller of specialized military gear, is the latest organization whose receipt of taxpayer-backed loans through the Paycheck Protection Program has raised questions about a program launched in early April to help sustain employment at small companies through the economic crisis.
In late April, the Treasury Department retroactively clarified its rules after well-known restaurant chains, car dealerships and hotel companies reported receiving PPP loans. Several of them returned the loan funds following public uproar; others kept the money. The SBA has said it will audit all PPP loans above $2 million to determine whether the recipients were eligible.
Representatives from the Small Business Administration and Atlantic Diving Supply did not comment on the company’s receipt of SBA loans.
https://www.msn.com/en-us/money/smallbusiness/defense-contractor-with-billions-in-sales-got-millions-in-pandemic-loans-intended-for-small-businesses/ar-BB17vqGw?li=BBnb7Kz
