Federal Department of Justice inquiry into SCOV’s PPP loan

Early in the COVID-19 pandemic, Congress passed the Payroll Protection Program(PPP) to avoid the pending financial disaster rapidly building within small businesses throughout our nation. It was structured to help keep their workforce employed. Because SCOV was just such an entity and after investigating to verify eligibility, SCOV leadership applied for and was approved for funding. We were one of over one million recipients.

As should be expected, the federal government followed up to verify that these grants were in full compliance with regulations.

As a result of this oversight, over 70,000 recipients of PPP loans nationwide were asked for verification that all obligations were properly adhered to.

One group receiving attention was HOAs, and one of many HOAs that received a government request for information was SCOV.

The SCOV Board immediately notified us of the government’s request in a letter sent to Association members on October 30, 2024. In that letter, our Board stated, “With the assistance of our attorneys and the bank from whom we received the loan, we are fully cooperating with the US Attorney’s Office.”

Given the number and complexity of the investigations involved, disposition could take months or even longer.

As with all issues involving legal review, the Board and the Administration cannot comment on the matter until it is resolved; however, residents have been assured by the Board that we will immediately be informed of any reportable actions on the situation.