The House of Representatives is expected to consider legislation next week that would give businesses more flexibility in how they use funds from the Paycheck Protection Program (PPP) and still have their loans forgiven. The bipartisan legislation, sponsored by Reps. Dean Phillips (D-MN) and Chip Roy (R-TX), would give businesses 24 weeks to spend the money instead of eight and eliminate the requirement that businesses spend at least 75 percent of the funds on payroll to qualify for loan forgiveness.
Dozens of business groups, including AIADA, sent a letter earlier this week to the administration and congressional leadership supporting the proposed changes. The Senate has not yet committed to take up similar legislation; however there does appear to be strong bipartisan support in the upper chamber for provisions included in the House bill. The president has also indicated he would be supportive of such changes to the program.
Since the PPP launched on April 3rd, more than $500 billion in loans have been approved by the Small Business Administration (SBA). Approximately $100 billion remains available in the fund and applications are still being accepted. Dealers interested in applying for a loan should do so ASAP through an eligible local lender. The PPP loan forgiveness application can be found here and more information on the PPP can be found here.
ICYMI
The AutoTalk Webinar COVID Series presentations and slide decks are available now:
Customer Care and Business Guidance During a Pandemic
Tax and Financial Planning in the Time of COVID-19
COVID-19's Impact on Auto Sales
Minimizing Risk and Completing Deals Amid a Pandemic
An Update on COVID-19's Impact on Auto Sales
Paycheck Protection Program Update: What Have We Learned and What Are We Still Waiting On
Managing Your Cyber Risk (Attacks and Scams are Up During the Pandemic)
And be sure to register today for our other important webinars, including Sanitation and Decontamination Processes to Reduce Virus Risk coming up on May 27th!
Quote of the Week
"You're not just automatically flipping a switch and everything goes back to 100 percent, so we're focused on getting there."
-Cody Lusk, AIADA President & CEO (Politico)
Must Read
The spring issue of AutoDealer, with a special feature on the COVID pandemic, just hit newsstands!
Friday Feel Good
Here are JUST A FEW recent examples of how the international nameplate auto industry is doing good in communities across the US during the COVID pandemic:
BMW Dealers are providing medical personnel & first responders with discounted service or loaner vehicles, supporting local businesses & donating needed supplies, or ensuring fresh meals are delivered to the heroes on the front lines.
Toyota Lexus Minority Owners Dealership Association (TLMODA) partnered with the Salvation Army as a part of their day of service to give away 4,800 grocery boxes in 24 cities across 17 states.
Kia Motors America donated face shields to hospital centers throughout the Chicago and Detroit area.
American Honda teamed up with the Anaheim Ducks and the City of Anaheim for the Second Harvest Food Bank's Pop-Up Drive-Thru Food Distribution which donated 75,000 meals to families in need.
We want to hear more about how you are supporting your local community during this difficult time – tweet us at @AIADA_News.
