Coronavirus Aid, Relief, And Economic Security (CARES) Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law enacting various economic provisions including a loan program for small businesses with fewer than 500 employees as well as tax relief for individuals and businesses. The following are some resources for dealers regarding the currently available details of the new legislation:
- Paycheck Protection Program - The small business Paycheck Protection Program (PPP) began accepting applications Friday, April 3, 2020. The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities. Click here for more details on the PPP.
- Employee Retention Credit -The Treasury Department and the Internal Revenue Service have launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. Click here for more details.
- NADA Issues FAQs on CARES Act Paycheck Protection Program - Issued April 3, 2020 (Updated April 23, 2020) (Check back for future updates).
- NADA Summary of Dealer-Related Provisions - Issued March 27, 2020
- NADA Memo - Issued March 27, 2020. Explains the provision included in the law that will enable certain franchised dealers to qualify for a waiver of the affiliation rules that typically apply for Small Business Administration (SBA) loans. IMPORTANT UPDATE - See new additional Interim Final Rule on Affiliations issue April 3, 2020.
- U.S. Chamber of Commerce "Coronavirus Emergency Loans Small Business Guide and Checklist" - Publication that provides an overview of a key part of the newly enacted Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. The publication addresses the $350 billion allocation to assist small businesses keep workers employed amid the COVID-19 pandemic and economic downturn.