14 Extended Auto Warranty Administrators Approved for PPP Funds

Vehicle service contract administrators or related entities reveive Paycheck Protection Program loans

Posted by Tony Russell

September 2, 2020

An investigation into a Paycheck Protection Program loan database provided by the U.S. Treasury Department and the Small Business Association has revealed that at least fourteen automobile extended warranty administrators or related entities were approved for PPP loans. The loans, part of the government's COVID-19 financial response, were provided by banks in coordination with the SBA.

The total value of the loans provided are between $9.25 and $24.05 million. A precise total amount of the loans is not available because the government's database only provides loan ranges approved for each entity, not a precise amount.

Three warranty administrators received loans in the second-tier of loans, which range between $2 and $5 million. Those companies are: American Guardian Warranty Services, Inc. of Warrenville, Illinois, AAS Services, LLC of Lakewood, Colorado, and Enterprise Financial Group, Inc. of Irving, Texas.

Eight administrators received 4th-tier loans in the range of $350,000 and $1 million, including Lees Summit, Missouri based Mechanical Breakdown Protection, Inc., and Kingston, Pennsylvania based Penn Warranty Corporation. Two of the entities receiving between $350,000 and $1 million appear to be related to each other, Dimension Service Corporation and Allegiance Administrators, LLC. Both companies are based in Dublin, Ohio and list the same address of 5500 Franz Road in the government's database.

Diamond Warranty Corporation, SunPath Ltd., and Matrix Warranty Solutions all received PPP approval of $150,000 and $350,000.

A complete list of auto warranty administrators approved for PPP loans is below:

The largest warranty-related PPP loan discovered thus far is to CarShield parent NRRM, LLC of Saint Peters, Missouri, which received a PPP loan of between $5 and $10 million.