The Connecticut-based fitness company that owns and operates more than 130 Planet Fitness centers around North America has paid more than $2 million to resolve allegations that it received a COVID relief loan intended for small businesses.
The agreement was announced Wednesday in a statement issued by the U.S. Attorney’s Office for the District of Connecticut.
According to federal officials, IFH Holdings Group, Inc., doing business as IGNITE Fitness Holdings, applied in February 2021 for a “second-draw” Paycheck Protection Program loan for $2 million. IGNITE owns and operates more than 130 Planet Fitness locations in the United States and Canada and is based in Milford.
The second-draw loan program was approved by Congress in December 2020 and became available to borrowers beginning in January 2021. The eligibility requirements included having fewer than 300 employees.
According to federal officials, IGNITE applied for the forgivable loan and certified that it was eligible for a “per-location” exception to the employee count requirement.
“However, this exception did not apply to IGNITE,” the U.S. Attorney’s Office wrote.
After receiving the loan, IGNITE received forgiveness of the total loan amount and more than $7,000 in interest, authorities said.
The settlement that was reached between IGNITE and the U.S. Attorney’s Office resolves the allegations.
