Battle Creek serves as the North American headquarters for Bleistahl, which supplies metal products for automotive, energy and aerospace industries. In 2021, Bleistahl applied for and received a second-draw PPP loan of $1.3 million that was designed for companies with fewer than 300 employees, which was forgiven by the Small Business Administration.
According to a press release from the U.S. Attorney's Office for the Western District of Michigan, a claim was made under the whistleblower provision of the False Claims Act that Bleistahl has falsely claimed less than 300 employees. The DOJ then took up the case to investigate, and alleged based on its findings that Bleistahl was ineligible for the PPP loan because the company had over 300 employees.
According to the statement, the DOJ said it negotiated a settlement of $2,355,832.05 that Bleistahl will pay to resolve the claim, which will also release the company from liability.
In a press release sent via email, Bleistahl spokespeople said: "Accepting responsibility for these errors, BLNA has worked with the DOJ to come to a civil settlement by repaying the 2021 PPP Loan received, including applicable interests, penalties and fees.”
In the press release, spokespeople for the company claimed that a series of mix-ups at Bleistahl North America leading to the falsely obtained loan. In 2020, the company obtained a PPP loan that was meant for companies with fewer than 1000 employees. In 2021, Bleistahl then applied for a second loan meant for companies with fewer than 300 employees.
"However, the combination of changed eligibility criteria for receiving this loan (the company size requirement including affiliated entities was reduced from less than 1000 employees to less than 300 employees) combined with lack of organizational continuity due to changes in the BLNA management team led to an incorrect statement of company size. This led to a loan forgiveness BLNA was not eligible for," the statement said.
The statement said Bleistahl was notified of the DOJ investigation in 2024, and "have been in full cooperation with the DOJ to investigate these allegations." According to the DOJ, the settlement amount and repayment plan were decided based on Bleistahl's ability to pay.
