MEQUON, Wis. (CBS 58) — Ozaukee Country Club has agreed to pay $750,000 to settle allegations that it improperly received a Paycheck Protection Program loan during the COVID-19 pandemic, federal officials announced.

The Paycheck Protection Program, created in March 2020, provided federally guaranteed loans to eligible small businesses and nonprofits impacted by the pandemic. Borrowers who used the funds on qualified expenses could have their loans forgiven.

According to the U.S. Attorney's Office, Ozaukee Country Club was ineligible for the program because it operates as a private club that restricts membership for reasons other than capacity.

Federal officials said the Mequon-based club requires prospective members to be sponsored by current members, undergo background checks and receive approval from the club's board of directors before joining.

"Although our criminal division receives most of the high-profile attention, the U.S. Attorney's Office also has an outstanding civil division," First Assistant U.S. Attorney Brad Schimel said. "I am very proud of the excellent work our civil division did on this case and countless others to protect the interests of the United States and its citizens."

"The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney's Office and other federal law enforcement agencies to recover the product of this fraud as well as penalties," SBA General Counsel Wendell Davis said.

The settlement resolves the government's allegations regarding the PPP loan. Ozaukee Country Club does not admit liability, and no court has determined that the club is liable.