Earlier this week the Treasury Department and Small Business Administration (SBA) announced that recipients of Paycheck Protection Program (PPP) loans of less than $2 million would be given "safe harbor" and not face additional scrutiny. This means that borrowers of less than $2 million "will be deemed to have made the required certification concerning the necessity of the loan request in good faith." Additionally, in the most recent guidance, the safe harbor date for loan repayment was extended to May 18 (see FAQs 46-47). It also indicates the IRS intends to focus resources toward the auditing of those loans in excess of $2 million.
Applications for Paycheck Protection Program (PPP) loans are still being accepted and funds are reportedly still available, but dwindling. Dealers interested in applying for a loan should do so ASAP through an eligible local lender. More information on the PPP can be found here.
The House will vote today on a broad $3 trillion bill largely viewed as a wish list of Democratic priorities. Speaker of the House Nancy Pelosi (D-CA) has guaranteed its passage but the legislation has little chance of gaining any traction in the Senate. Today's vote comes as Congress mulls the best way to provide additional relief from the COVID pandemic and stimulate the economy.
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
And be sure to register today for our other upcoming webinars!
Quotes of the Week
"Dealers who have received PPP loans don't need to be worried about defending their choices, but they should be prepared to concisely lay out their reasoning for applying for the loan."
-Jason Courter, AIADA Chairman (Courter's Two Cents, www.aiada.org)
"I'm comfortable sitting here today and declaring the automotive recovery is underway."
-Mike Jackson, CEO, AutoNation (CNBC)
Must Read
Check out the latest Chairman's Blog from AIADA Chairman Jason Courter, PPP Loans: Preparing for What Comes Next.
Must Watch
Watch AutoNation CEO Mike Jackson on Squawk Box discussing the automotive recovery and what he has learned serving customers during COVID.
Friday Feel Good
Not only are dealers staying open to provide essential services in our country's time of need, but they're also doing so much good for their communities. Here are JUST A FEW recent examples:
Camelback Subaru in Arizona has so far donated 98,094 meals to a local food bank through Feeding America. In addition, it is donating 100 meals for every Subaru the dealership sells through May 31 in the car purchaser's name. Non-perishable food items are also being collected the dealership.
Phil Long Dealerships in Colorado and New Mexico provided free oil changes and safety inspections to critical workers.
Toyota engineer Jeremy Hopkins of Tennessee helped to create PPE for healthcare workers.
We want to hear more about how you are supporting your local community during the pandemic – tweet us at @AIADA_News.
