United Abrasives Statement Regarding DOJ PPP Settlement

United Abrasives has resolved a civil matter with the U.S. Department of Justice concerning a Paycheck Protection Program (PPP) loan received during the COVID-19 pandemic. As part of the settlement, United Abrasives does not admit liability and strongly maintains that it did not knowingly submit incorrect information in connection with its PPP loan or forgiveness application.

United Abrasives cooperated throughout the process and ultimately chose to resolve the matter rather than continue with the cost, uncertainty and distraction of litigation. The settlement brings the matter to a close.

At the time the PPP application was submitted, United Abrasives relied on the information reasonably available to it, the PPP rules and guidance then in effect, and the professional assistance available during the application process. The application and supporting documentation were prepared in good faith. United Abrasives’ PPP funds were used to pay our employees and other permitted business expenses during that extraordinary period.

The PPP was created during the pandemic crisis to provide rapid assistance to businesses so they could protect jobs and continue operating. To allow the program to operate at unprecedented speed, the government relaxed many traditional review and verification safeguards. At the same time, PPP rules and guidance were repeatedly modified and supplemented, sometimes on short notice and through detailed requirements that were difficult for businesses to navigate within the program’s limited application timeframes.

United Abrasives is one of many small businesses across the country that have reached settlements with the U.S. Department of Justice relating to PPP loans. The number of businesses that have subsequently faced enforcement actions concerning PPP eligibility and program requirements illustrates some of the challenges and unintended negative consequences associated with a program created with good intentions and implemented rapidly to provide urgent economic relief.

United Abrasives recognizes the importance of protecting government programs and ensuring compliance with their requirements. At the same time, the company maintains that it acted in good faith based on the information, guidance and professional assistance available when its application was submitted.

United Abrasives has been manufacturing abrasive products in Connecticut for decades. We take our legal and compliance responsibilities seriously, and our focus remains where it has always been: supporting our employees, serving our customers and distributors, and manufacturing high-quality products in the United States.