In the late evening hours on Wednesday, by a unanimous vote of 96-0, the U.S. Senate passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act), a $2 trillion package to blunt the impact of the COVID-19 pandemic on American families and businesses. AIADA released a statement lauding the Senate's passage of the legislation and urging quick action in the U.S. House of Representatives. The House is expected to vote on the package soon and the president is expected to sign it shortly thereafter.
Upon enactment, many dealerships would be eligible to participate in a "paycheck protection program," which would provide cash-flow assistance through federal loans which would be forgiven provided certain criteria are met. This proposal would be retroactive to February 15, 2020 and be open to businesses with 500 employees or less, though does allow for affiliation rules to be waived which would be a benefit to many dealerships. The legislation also includes many tax provisions that could be helpful to dealers, including tax credits, deferred payment of 2020 payroll taxes, and other tax relief. AIADA will hold an important AutoTalk webinar with more detail on how these changes could help you and your employees on Monday, March 30th.
In advance of the vote, AIADA sent a letter to congressional leadership asking that the 500 employee threshold for eligibility be reconsidered. Also earlier this week, AIADA joined with the Alliance for Automotive Innovation, the American Truck Dealers (ATD), the National Automobile Dealers Association (NADA) and the National Association of Minority Automobile Dealers (NAMAD) in a letter to the White House asking that guidance on essential services should be amended to clarify that certain sales and leasing activities be included.
Don't Miss
Federal Stimulus Information
How the program can benefit you and your employees
- Latest information on Federal stimulus package and key tax provisions
- Small Business Administration Loan Programs
- Federal tax filing and payment deadline relief
- Tax Update on The Families First Coronavirus Response Act
WHEN: Monday, March 30th - 2:00pm EDT
To register, click here.
Quotes of the Week
"As Congress and the administration discuss the next steps, AIADA urges you to act quickly and purposefully to put forth strategies and policies that strength the economy, help stabilize markets and ensure liquidity for businesses."
- Cody Lusk, President & CEO, AIADA (Automotive News)
"Among other provisions, the [CARES Act] gives dealerships quick and efficient access to SBA loans, which will allow them to continue to make payroll and give them and their employees a fighting chance in the months ahead."
-Cody Lusk, President & CEO, AIADA (www.aiada.org)
Must Watch
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Watch Cody Lusk, AIADA President &CEO on CBT News discussing why dealerships are ESSENTIAL.
Friday Feel Good
Man Runs Toilet Paper Exchange on California Street Corner
Disturbed by empty store shelves and reports of hoarding during the coronavirus crisis, a man stood on a Southern California street corner and held up a homemade cardboard sign with a simple request: "Share your toilet paper."
Jonny Blue told the San Diego Union-Tribune on Saturday that the response to his impromptu toilet paper exchange in Encinitas was immediate and positive.
Drivers honked horns in support and stopped to drop off rolls of toilet paper. Just as quickly, Blue would hand rolls to those in need.
Blue, a physical therapist, said he plans to be out on the corner again Sunday to "encourage people to be better" amid the global pandemic.
The 33-year-old told the newspaper he made his sign after a friend had a difficult time finding diapers and essential supplies for his kids.
"I think people want a sense of community," Blue said. "When things are really challenging, people are looking to band together and be unified."
(Associated Press)
AIADA's One-Page Print-Out: Plan and Respond to Coronavirus at Your Dealership
Federated Insurance: Coronavirus and Pandemic Directives and Go-To Resources
Senate CARES Bill: Tax Provisions
Senate CARES Bill: Helping Small Business
Department of Labor Revised Guidance on Families First Act (Phase 2)
