This week the U.S. Senate overwhelmingly passed legislation, previously passed by the House last week, which will make changes to Paycheck Protection Program (PPP) to make it more accessible and allow for more flexibility for loan recipients. The bill will give businesses 24 weeks to spend the money instead of eight and lower the requirement that businesses spend at least 75 percent of the funds on payroll to qualify for loan forgiveness to just 60 percent. It also extends the time to pay back the loan from two years to five years. Several weeks ago AIADA and a broad coalition of business groups sent a letter to congressional leadership advocating for the changes. The bill will now head to President Trump's desk for his signature. The PPP loan forgiveness application can be found here and more information on the PPP can be found here.
USMCA
Less than a month before the U.S.-Mexico-Canada Agreement (USMCA) enters into force on July 1, the ground rules for the new trade pact have been released. Automakers are currently reviewing the "uniform regulations" and working with the administration on their concerns. Many automakers are also considering whether to request additional time to comply with the new requirements for increased U.S. labor and parts content, which if approved, would extend the phase-in period for the new rules from three years to five.
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)
Sanitation and Decontamination Processes to Reduce Virus Risk
An Update on COVID-19's Impact on U.S. Auto Sales
And be sure to register today for our other important upcoming webinars!
Quote of the Week
"More than ever, right now, we need legislators to know how we matter in our community and the jobs we provide to our local economy."
-Jason Courter, AIADA Chairman (Beltway Talk podcast, www.aiada.org)
Must Listen
Check out the latest Beltway Talk podcast featuring AIADA Chairman Jason Courter discussing his experience selling cars amidst a pandemic.
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:
Dahl Toyota in Minnesota created a $50,000 One Team Fund, available to employees who are struggling financially at this time.
Mankato VW in Minnesota purchased $25,000 in gift cards from local businesses and donated them to health care workers and first responders.
Working with Honda Manufacturing of Ohio, SoCal Honda Dealers and North Texas Honda Dealers are donating 20,000 face shields to help keep frontline healthcare workers safe at local hospitals.
Toyota partnered with Mississippi State University Extension to organize mobile food pantry drives held by the Mission of Mid-South Food Bank.
We want to hear more about how you are supporting your local community during this difficult time – tweet us at @AIADA_News.
