Franklin Nonprofit to Pay $1M Settlement Over Ineligible Pandemic Loan Forgiveness

A Franklin non-profit with the goal of promoting energy efficiency is paying $1 million to settle a claim it falsely received financial benefits during the pandemic. The Energy Federation, Inc. is a 501(c)(4) nonprofit organization that helps homeowners learn about energy efficiency. But a 501(c)(4) nonprofit has different tax rules than a 501(c)(3) nonprofit and as such EFI was not eligible for the Small Business Administration loan forgiveness through the 2020 Paycheck Protection Program. The US Attorney’s office says EFI was aware they were not eligible when they submitted their application.