Sacramento-Based Political Consulting Firm Resolves Claims Involving Paycheck Protection Program Loan

Lobbying organization Governmental Advocates Inc. has self‑disclosed its ineligibility for the Paycheck Protection Program loan it obtained and voluntarily paid more than $200,000 to resolve civil claims regarding the loan, Acting U.S. Attorney Michele Beckwith announced today.

Congress created the Paycheck Protection Program (PPP) in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security Act, to provide relief to small businesses experiencing economic hardship during the COVID-19 pandemic. Although many businesses were eligible for these loans, some businesses were not, including those primarily engaged in political or lobbying activities, like Governmental Advocates.

In September 2024, Governmental Advocates self-disclosed to the United States that, as an organization primarily engaged in lobbying activity, it was ineligible for the PPP loan it had obtained and that it had voluntarily repaid the loan principal of $183,688. Governmental Advocates applied for the loan in April 2020 and later applied for loan forgiveness. The Small Business Administration approved that application, forgiving $183,688 in principal and $2,289.81 in interest. In the settlement announced today, Governmental Advocates agreed to pay the United States a total of $239,954.87, including the repaid loan principal as well as forgiven interest, the fee paid to the lending bank by the SBA, and settlement interest.

“We are pleased that Governmental Advocates chose to voluntarily disclose this conduct and make full repayment,” said Acting U.S. Attorney Beckwith. “We encourage any company that may have received federal program funds in error to consider self-disclosure and cooperation.”

SBA’s General Counsel Wendell Davis stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working in conjunction with the U.S. Attorney’s Office, to pursue a fair recovery of pandemic relief funds.”

The matter was handled by Assistant U.S. Attorney Tara Amin.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.