Systemair Settled Improper COVID-19 Loan Case
A Lenexa-based manufacturer has agreed to pay over $2.3 million to resolve allegations of loan ineligibility.
Updated on Oct. 14, 2026 in Corruption
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Systemair MFG, Inc. has agreed to pay $2,357,709 to settle allegations that it improperly received a Paycheck Protection Program (PPP) loan. The settlement resolves claims that the company was ineligible for the relief funds due to its parent company ownership.
Why it matters
The case highlights the federal government's ongoing scrutiny of COVID-19 relief disbursements to ensure compliance with program rules. Allegations centered on whether the subsidiary exceeded employee limits by being part of a larger global firm.
The settlement of $2,357,709 resolves allegations regarding loan ineligibility without a formal court ruling. The U.S. Attorney's Office and the Small Business Administration led the investigation initiated by a whistleblower complaint.
The players
Systemair MFG, Inc.
This is a manufacturing company based in Lenexa that operates as a subsidiary of a international firm.
Systemair AB
This is a Sweden-based parent company that owns Systemair MFG, Inc.
Small Business Administration
This is the federal agency responsible for overseeing the Paycheck Protection Program and investigating loan compliance.
U.S. Attorney's Office
This is the government body that conducts federal litigation and investigations into claims of fraud or program abuse.
The details
Investigators alleged that the Lenexa-based company was ineligible for PPP funds because it failed to meet size standards while under the ownership of Sweden-based Systemair AB. Following the receipt of the loan, the company attempted to seek full forgiveness for the debt before federal scrutiny began.
Timeline
In June 2020, Systemair MFG, Inc. received a Paycheck Protection Program loan.
Legal Context
This settlement reflects a broader pattern of enforcement under the False Claims Act, which provides a framework for resolving disputes over federal relief funds. The case demonstrates how the federal government continues to leverage these statutes to audit pandemic-era business loans.
This resolution ensures that federal relief funds intended for small businesses are returned when eligibility rules are violated. Local residents and taxpayers are impacted by the government's continued efforts to recover funds distributed during the pandemic.
The takeaway
Companies that received pandemic assistance are still subject to rigorous federal compliance reviews years after the funds were initially issued. Businesses must ensure that global ownership structures and employee counts strictly align with federal program definitions to avoid future liability.
Further reading
For more information on legal actions in the region, visit Lenexa Corruption.
Source note: This article includes information reported by Kclyradio.
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