PEACHTREE CITY, GA — A Georgia-based subsidiary of a German company has agreed to pay $2.6 million to resolve allegations it improperly received a COVID-era Paycheck Protection Program loan.

Universal Environmental Services in Peachtree City applied for a PPP loan in 2020, which was designed to help small businesses struggling during the pandemic.

Federal prosecutors said the company did not qualify because it had more than 300 employees, exceeding the program’s eligibility requirements.

Prosecutors said the investigation began after a whistleblower filed a complaint.

“When people provide false information to obtain government-backed loans, they break the law and misdirect resources away from those who need them,” said U.S. Attorney Theodore S. Hertzberg. “Our office will continue to enforce the False Claims Act to recover such funds, plus penalties.”

According to Department of Justice officials, “the claims resolved by the settlement are allegations only, and there has been no determination of liability.”

The settlement resolves allegations related to the company’s application for pandemic relief funds. The company has not admitted wrongdoing as part of the agreement.