IFH Holdings Group, Inc., operating as IGNITE Fitness Holdings and formerly known as ECP-PF Holdings Group, Inc., has agreed to pay over $2 million to resolve allegations related to a Paycheck Protection Program (PPP) loan. The company, which manages more than 130 Planet Fitness locations in the United States and Canada from its headquarters in Milford, Connecticut, was accused of obtaining a PPP loan for which it was not eligible.
The PPP was established in March 2020 under the CARES Act to help small businesses retain employees during the COVID-19 pandemic. The program required applicants to certify their eligibility and provide accurate information when applying for loans administered by the Small Business Administration.
In January 2021, a second round of forgivable PPP loans became available with stricter requirements. Businesses generally needed to have no more than 300 employees unless they qualified for specific exceptions. According to federal authorities, IGNITE applied for a $2 million second-draw PPP loan in February 2021 and certified that it met an exception allowing larger businesses per location. However, officials stated that this exception did not apply to IGNITE.
After receiving the loan and having it fully forgiven—including principal and interest totaling $2,007,726.03—the government alleged that IGNITE exceeded the employee limit and did not qualify for any exemption.
David X. Sullivan, U.S. Attorney for the District of Connecticut, announced the settlement amount paid by IGNITE. “This matter was handled by Assistant U.S. Attorney Sara Kaczmarek, with assistance from SBA’s Office of General Counsel.”
Individuals who suspect fraud involving COVID-19 relief programs are encouraged to report such activity through the Department of Justice’s National Center for Disaster Fraud Hotline or online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.