Paycheck Protection Program

Coronavirus Aid, Relief, and Economic Security Act (CARES)
Paycheck Protection Program

Phase III of the government’s response to the COVID-19 virus has been signed into law and creates a new, temporary loan program to assist businesses, including auto dealers.

Resources

Paycheck Protection Program Loan Forgiveness Application

Interim Final Rule on Loan Forgiveness

Interim Final Rule on Loan Review Procedures and Related Borrower Responsibilities

SBA: Paycheck Protection Program-Participating Lenders

Treasury Department: Paycheck Protection Program Overview

Treasury Department: Paycheck Protection Program FAQs

PPP Loans: Do Businesses Owned by Large Businesses Qualify? NADA Preliminary Guidance 

PPP Loans: Use of Proceeds and Forgiveness NADA Preliminary Guidance

Senate Committee on Business and Entrepreneurship: Paycheck Protection Program FAQs for Small Businesses 

U.S. Chamber of Commerce: Coronavirus Emergency Small Loans Small Business Guide and Checklist

About

  • The CARES bill provides $350 billion for 100 percent federally-guaranteed loans for eight weeks.
  • In April, Congress authorized an additional $320 billion for the program.
  • Dealers may borrow up to 250 percent of their average monthly payroll cost and may be forgiven equal to the amount spent over an eight week period following the origination date of the loan.
  • Eligible businesses must have paid salaries and payroll taxes prior to February 15, 2020 and have fewer than 500 employees. 
  • For those auto groups with more than 500 employees eligibility affiliation rules may be waived under certain criteria. Click here for information from NADA on how this applies to dealers.
  • Loans can be used for “payroll costs” up to an annual rate of $100,000 per employee. This also includes interest on mortgage obligations, rent, and utilities. 
  • SBA-certified lenders and non-SBA lenders will be authorized to make Payment Protection loans through delegated authority for quicker processing. 
  • Loans will not require an application fee, personal guarantees, collateral, or closing costs.

 

 

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