California Fairgrounds to Pay $5.7 Million Settlement Over COVID Loan

The San Diego County-based organization was surprised by the federal investigation into its COVID-19 PPP loan.

A horse races to victory during the Breeders' Cup Classic race at the Del Mar racetrack in Del Mar, Calif., on Nov. 6, 2021. Gregory Bull/AP Photo

The owners of Del Mar Fairgrounds in San Diego County agreed on Oct. 22 to pay $5.7 million to settle allegations that they unlawfully received a COVID-19 paycheck protection loan.

The 22nd District Agricultural Association (DAA), which owns the fairgrounds, is governed by a nine-member board, all appointed by Gov. Gavin Newsom and considered a government-owned operation.