Coronavirus Resources
Coronavirus Resources for Dealers
PrintPaycheck Protection Program (PPP)
The PPP prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and business expenses. GNYADA thanks NADA for providing this quick rundown of the PPP.
Who's eligible: Dealerships with fewer than 500 employees that have paid salaries and payroll taxes prior to February 15 can secure a loan up to 2.5 times the borrower’s average monthly payroll costs. For auto groups with more than 500 employees, eligibility affiliation rules may be waived under certain criteria.
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Where to go: The U.S. Treasury Department launched a website explaining the Small Business Administration’s PPP loan program for small businesses. The site includes an overview of the program, a fact sheet for borrowers and new Borrower Application and Lender Application forms.
Your Franchise Identifier Code (FIC) is required for dealers to complete their SBA PPP Loan Application. Small Business Administration Franchisor Identifier Codes as of 4/9/20
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What tax benefits are NOT available for PPP: Dealers who obtain a PPP loan will not be able to defer the payment of payroll taxes or utilize the employee retention tax credit provided for in the CARES Act. Consult your financial advisors to compare the cash flow benefits of these tax provisions versus a PPP loan. Both are explained on page 11 of this document.
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More information: NADA released CARES Act FAQs that include information on the PPP. The FAQs incorporate the new guidance on PPP loans and information on SBA Economic Injury Disaster Loans, tax provisions and changes to unemployment assistance. You can also visit the SBA’s PPP webpage.
GNYADA Paycheck Protection Program Webinar
GNYADA held a webinar on April 2nd that walked dealers through the Paycheck Protection Program (PPP). Presenter, Russell P. McRory, Esq., and his team from Arent Fox explained the following:
- Period during which PPP loans will be issued
- Eligibility to participate in the PPP
- The size, interest rate and maturity limits of the PPP loans
- What the PPP loan proceeds can be used for
- Loan forgiveness and payment deferrals
- How to obtain a PPP Loan
Click Here to watch the webinar
Click here for the latest Small Business Administration Franchisor Identifier Codes
Below are GNYADA Allied Members who are available to assist dealers with the PPP loan application:
Russell P. McRory, Esq.
Arent Fox LLP
212.484.3990
www.arentfox.com
Richard Sox, Esq.
Bass Sox Mercer
850.878.6404
www.dealerlawyer.com
Jeffrey Citron
Davidoff Hutcher & Citron
646.428.3233
www.dhclegal.com
Paul L. Charles, CPA
Richards, Witt & Charles
516.741.0515
https://autocpa.net
Kenneth R. Rosenfield, CPA
Rosenfield and Co.
888.556.1154
www.rosenfieldandco.com
Kenneth R. Cerini, CPA
Cerini and Associates
631.582.1600
www.ceriniandassociates.com
Continue checking gnyada.com/COVID-19 for regular updates to the Dealer Resources Page concerning the Coronavirus.
If you still have questions, please call GNYADA's Dealer Hotline at 718.746.5900.
Coronavirus Resources Overview