Is R.E.C. INC a Scam?
|Loan Amount||457400 USD|
|Current Approved Amount||457400 USD|
|Loan Tenure||24 months|
|Loan Approved on||10/15/2021|
|Lender Bank||Bremer Bank, National Association|
|Lender Bank City||SAINT PAUL|
|Lender Bank State||MN|
|Business Age||Existing or more than 2 years old|
How R.E.C. INC Claims To Have Used Their PPP Funds of 457400 USD
As we have discussed earlier, R.E.C. INC received a substantial amount of money through the SBA program. But have they used it correctly? Let’s analyze.
These amounts were reported to the SBA by the company. Often, however, whistleblowers & employees reveal that their employers have abused their funds. If you think R.E.C. INC has done something nefarious, then report them here using the review box at the bottom of the page.
What Constitutes A PPP Loan Scam?
The primary goal of PPP loans was to help businesses survive the pandemic and ensure that people don’t lose their employment. Businesses who took out these loans could spend the borrowed sum on:
- Salaries, bonuses, commissions, wages (maximum $100,000 per annum per employee)
- Insurance premiums
- Employee allowances (sick leaves, medical, parental, and vacation pay)
- Operational expenditure
- Utility payments
- Mortgage interest payments
Federal authorities are aggressively targeting individuals and companies for PPP loan fraud. Launched in March 2020 in response to the economic uncertainty that was triggered by the novel coronavirus (COVID-19) pandemic, the PPP made hundreds of millions of dollars in federal funding available to businesses struggling as a result of the pandemic. Loans issued under the PPP carry a 1% interest rate, but the loans are completely forgivable if certain conditions are met.
The low-cost (and potentially free) funds offered under the PPP have proven to be attractive not only to struggling businesses, but also to larger companies and scam artists. This has led to worry of widespread fraud (and a few highly-publicized cases of fraudulent PPP loan applications), and it has forced numerous federal agencies to turn their attention to combatting PPP loan fraud.
Penalties For Abusing Or Wasting The PPP Funds:
When a person is charged with PPP loan scam charges, they can face multiple civil and criminal penalties. Even a single PPP loan fraud case might involve multiple criminal laws.
- The first charge would be wire fraud. It invokes 18 USC Sec. 1343 and involves the use of a phone or internet to scam another party by using false statements.
- Bank fraud charges might also be filed against you. It invokes 18 USC Sec. 1344 and involves making false statements to a financial institution such as a bank. The penalty for this charge goes up to 30 years behind bars.
- A PPP loan fraud also includes making false statements to a financial institution, a federal crime. It invokes 18 USC Sec. 1014 and its violation leads to a jail 14 of up to 30 years.
- Finally, when you commit a PPP loan scam, you violate 18 USC Sec. 1349, conspiracy to commit fraud. It is a criminal offense when someone colludes with others in violating or attempting to violate federal laws whether they obtained money or not.
The above are just two instances of people getting caught by the authorities for this scam. Here’s another:
Frequently Asked Questions About PPP Loan Scam
Did R.E.C. INC get a PPP loan?
How much PPP Loan did R.E.C. INC receive?
Where is R.E.C. INC located?
How much did R.E.C. INC's PPP loan went towards paying salaries?
Which bank financed R.E.C. INC's PPP Loan?
What is the term for R.E.C. INC's PPP loan?
How many employees were reported by R.E.C. INC in their PPP loan application?
How much of R.E.C. INC's PPP loan was forgiven?
Footnotes and Citations
All information displayed on this page is publicly available information under PPP loan guidelines, in compliance with 5 U.S.C. § 552 (Freedom of Information Act) and 5 U.S.C. § 552a (the Privacy Act) and is published unmodified, as provided by the SBA. IsItaScam.com does not modify the data and makes no claims regarding its accuracy, nor will entertain any request to remove any entry.
The inclusion of a person or entity in the IIAS Database is not intended to suggest or imply that they have engaged in illegal or improper conduct related to PPP Loan (scam). IIAS intends to offer a platform where suspicious activities related to PPP loan can be shared and discussed in a secure environment. Please contact us if you find an error in the database.
Relevant links, resources and news –
- Up to three-quarters of the $800 billion in disbursed PPP funds flowed to business owners instead of workers, study finds
- SBA OIG Complaint Submission Form
- How my boss is using the PPP loan
- Is PPP Loan Fraud The Largest Fraud Of All Time?
- The looting of the Covid relief plan known as PPP
- 22 people charged in connection with a multi-million dollar Paycheck Protection Program fraud scheme
- Charged: PPP Scammers
- Small Businesses Are Being Hit by PPP Loan Scams
- 15% of Paycheck Protection Program Loans Could Be Fraudulent, Study Shows
- Man Passes Out After He’s Found Guilty of PPP Loan Fraud
- Helena man sentenced for PPP loan fraud
- What are the Charges for PPP Loan Fraud?
- Cape Coral woman pleads guilty to PPP loan fraud, accused of using money for a pool
- Biggest fraud in a generation
- PPP Loan Scams: 900 open criminal investigations, 100 arrested so far
- Bank Fraud Involving PPP Loans Could Lead to Prison Time, Even for Relatively Small Advances
- Money from the COVID Paycheck Protection Program was allegedly largely misspent
- Florida Man Charged With PPP Loan Fraud After Allegedly Misusing Millions To Buy Luxury Goods
What R.E.C. INC’s Employees and Consumers can do to report potential PPP Scam?
There is no record of R.E.C. INC committing any sort of PPP Scam reported anywhere. However, that can change quickly, and this page allows employees, citizens and consumers to share information on R.E.C. INC they are privy to, and expose any/all wrongdoings.
R.E.C. INC took out a PPP loan worth $457400 for Payroll Processing for it's 34 employees. As tax-payers, we need to hold businesses accountable and ask serious questions. Our rating on R.E.C. INC is based on multiple factors, including publicly available information, reviews and user notifications.