Buffalo Club to Pay $1.5 Million in Federal Settlement Over Pandemic Loan Eligibility

A longstanding private club in downtown Buffalo has agreed to a $1.5 million payment to settle federal allegations tied to its participation in a COVID-19 relief program, according to the U.S. Attorney’s Office.

Federal officials said The Buffalo Club, an institution that has operated for more than 150 years, improperly represented its eligibility when it applied for a Paycheck Protection Program (PPP) loan during the pandemic. The club submitted its application in March 2021 and later received full forgiveness of the loan.

The PPP program, launched in March 2020 to support businesses impacted by COVID-19 shutdowns, was administered through the Small Business Administration. However, federal guidelines have long stated that private clubs – particularly those that restrict membership for reasons beyond capacity – are not eligible for SBA-backed funding, including PPP loans.

Authorities allege the Buffalo Club fell within that ineligible category but still secured the funds. The agreement announced this week resolves those claims, though federal prosecutors noted the settlement does not include any determination or admission of liability by the club.

Financial records provide additional context about the club’s operations during the pandemic period. According to publicly available nonprofit filings, the organization reported $6.2 million in revenue in 2020, a decline from $8.5 million the year prior. Revenue rebounded to just under $7 million in 2021 and climbed back above $8 million in 2022 as conditions improved.

Founded in 1867 by former President Millard Fillmore, the Buffalo Club has functioned as a nonprofit organization for more than 80 years. Located on Delaware Avenue, the club describes its mission as working to “cultivate a sense of belonging, inclusion and community like no other in the area.”

Buffalo Club to Pay $1.5 Million in Federal Settlement Over Pandemic Loan Eligibility