CarShield Parent Receives at Least $5 Million Paycheck Protection Program Loan

NRRM, LLC of Saint Peters, MO among receipients of highest-tier PPP loan

Posted by Tony Russell

July 14, 2020

An analysis of data released by the U.S. Treasury department and the Small Business Association (SBA) reveals that the parent of CarShield, NRRM, LLC, received a Paycheck Protection Program loan of between $5 million and $10 million dollars. NRRM is one of 30 businesses in the St. Louis area to receive the top-tier loan of $5-$10 million.

In releasing PPP loan data to the public, SBA is maintaining a balance between providing transparency to American taxpayers and protecting small businesses’ confidential business information, such as payroll, and personally identifiable information.

According to the Missouri Secretary of State's website, a fictitious name registration was made for vehicle service contract seller CarShield on April 14th, 2016 and lists MRRM, LLC as 100% owner. In addition, CarShield's website indicates that it is "Powered by: NRRM LLC."

CarShield parent in largest tier of PPP loans

At least 33 entities connected to the vehicle service contract and/or extended warranty business received PPP loans, but the loan received by NRRM is the largest service contract-related loan discovered thus far.

According to the SBA's database, NRRM's loan was approved on April 7, 2020 through Busey Bank, which has numerous locations in St. Louis, MO. The number of jobs retained is listed at 500, which is the maximum number of employees a business could have to be eligible for the program.

The SBA has made available a database of all recipients of Paycheck Protection Program (PPP) loans, with details such as loan amount, location, company name, and lender for loans above $150,000. The database can be downloaded from the SBA's website free of charge in comma delimited format. The publically-released PPP data only includes active loans. If a loan was cancelled, it is not included in the SBA's database.

According to the Treasury Department, all loans over $2 million are subject to audit.

PPP Loan Data Is Not Indicative of Loan Forgiveness or Program Compliance

"A small business or non-profit organization that is listed in the publicly released data has been approved for a PPP loan by a delegated lender. However, the lender’s approval does not reflect a determination by SBA that the borrower is eligible for a PPP loan or entitled to loan forgiveness. All PPP loans are subject to SBA review and all loans over $2 million will automatically be reviewed. The fact that a borrower is listed in the data as having a PPP loan does not mean that SBA has determined that the borrower complied with program rules or is eligible to receive a PPP loan and loan forgiveness. Further, a small business’s receipt of a PPP loan should not be interpreted as an endorsement of the small business’ business activity or business model."

The Paycheck Protection Program provided up to $659 billion in financial support to banks to make low-interest loans to companies and non-profits in response to the coronavirus pandemic.