Country clubs were exempt from receiving PPP loans, but the Strathmore-Vanderbilt Country Club still received one. (Photo by Alex Nunez)

The Strathmore-Vanderbilt Country Club of Manhasset is registered as a 501 (c) (7) non-profit organization which, under the CARES Act and confirmed by the Small Business Administration (SBA), is not permitted to receive a Paycheck Protection Program (PPP) loan. However, the country club actually received a PPP loan of $ 385,348 despite this waiver.

“501 (c) (7) tax-exempt organizations were not included in the SBA’s paycheck protection program through the CARES Act and are not eligible beneficiaries,” Matthew said. Coleman, regional director of communications for the SBA. Manhasset press. “PPP loans have not been granted or approved by the SBA; they have been approved by lenders with delegated authority and guaranteed by the federal government through our agency. This is the very essence of the PPP delegation of powers process contained in the CARES Act.

The Strathmore-Vanderbilt Country Club applied for the PPP loan through the Bank of America, which has the right to approve or deny the loan based on SBA guidelines. A Bank of America spokesperson said he would not comment on why the bank approved a loan from a 501 (c) (7).

PPP was designed to keep workers on the payroll in the event of a blockage by state or local authorities during the COVID-19 pandemic. The funding has helped many small businesses survive the first wave of the pandemic in the spring. However, a country club derives most of its income from membership dues.

The Strathmore Vanderbilt Country Club has been repeatedly asked to comment on this story by phone and email, but no response has been given. It is not known how many employees the country club had before and after receiving the loan or what the money was used for.

“Federal authorities take reports of suspected misconduct, wrongdoing or borrower ineligibility for federal programs very seriously,” said Coleman.

The SBA and the Treasury Department have said loans over $ 2 million will be reviewed, but the Strathmore-Vanderbilt Country Club does not fall into that category. Companies that have received PPP loans are currently requesting loan forgiveness, the country club loan might not be forgiven, and the country club would have to repay the loan with interest. United States district attorneys across the country have also filed criminal indictments for false information on PPP application forms.


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