KNOXVILLE, Tenn. — The U.S. Department of Justice said a Knoxville manufacturer has paid $2 million to resolve federal allegations that it improperly obtained a second-draw Paycheck Protection Program, or PPP, loan.

Koide Tennessee, which specializes in custom-cut-to-length steel and aluminum tubing, was ineligible for the loan because the company and its affiliates employed more than 300 workers, exceeding the limit set under the Economic Aid Act, according to the U.S. Attorney's Office Eastern District of Tennessee .

The business received the second-draw loan in March 2021 and later had it forgiven. Federal officials allege the company made false statements in both applications by saying it employed no more than 300 people.

The settlement resolves a whistleblower lawsuit filed unde

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