Vsoft Corporation Pays $2.3 Million to Resolve Improper PPP Loan Allegations

Vsoft Corporation has agreed to pay $2,299,949 to resolve allegations it improperly obtained a Paycheck Protection Program loan, the U.S. Department of Justice announced on May 8, 2026.

The North Carolina-based software company received a PPP loan intended to help small businesses keep workers employed during the COVID-19 pandemic. Federal rules limited eligibility to businesses that met specific size standards and certification requirements.

The government alleged Vsoft did not qualify yet obtained and retained the funds anyway. The payment covers the full amount of the disputed loan plus interest and penalties.

The settlement changes the company's status from accused recipient of improper federal aid to resolved defendant with no further liability on the matter. The agreement takes effect immediately upon signing. Vsoft did not admit liability in the settlement.

Downstream, the payment returns nearly $2.3 million directly to the Treasury, replenishing funds originally authorized under the CARES Act. The resolution closes one more open case in the government's multi-year effort to audit and recover improper PPP disbursements, which totaled more than $800 billion across roughly 11 million loans.

Federal prosecutors must now allocate recovered money according to statutory requirements while continuing to pursue remaining ineligible-loan cases. The Small Business Administration, which administered the program, gains a concrete data point for refining post-pandemic loan-integrity controls.

This settlement forms part of the Justice Department's ongoing enforcement initiative targeting PPP fraud and ineligibility. The department has secured hundreds of millions of dollars in recoveries since 2021 through both criminal prosecutions and civil settlements.

The original PPP program, created in 2020, required borrowers to certify eligibility under penalty of perjury; many companies later faced allegations they exceeded employee-count or revenue thresholds at the time of application.