BUFFALO, N.Y. — Two companies have agreed to pay more than $1.75 million to settle allegations that they obtained federal Paycheck Protection Program loans for which they were not eligible, according to the U.S. Attorney's Office .

Setterstix Inc. and MAE-EITEL Inc. will collectively pay $1,757,603.65 to resolve claims under the False Claims Act that they secured loans from the U.S. Small Business Administration after improperly certifying their employee counts. Prosecutors said the settlement addresses allegations that the companies failed to meet size requirements required for PPP loan eligibility and forgiveness.

The PPP — created by Congress in March of 2020 to aid small businesses during the COVID-19 pandemic — offered forgivable, Small Business Administration-guaranteed loans. To

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