Additionally, the SBA and Treasury Department
issued a joint statement on the PPP that read, in part "To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender's submission of the borrower's loan forgiveness application."
Forgiven PPP loan expenses that are excluded from income under the CARES Act may not be deducted for federal income tax purposes according to an
IRS notice issued last week.
The Employee Retention Tax Credit created under the CARES Act encourages businesses to keep employees on their payroll by providing a fully refundable credit equal to 50% of qualified wages that eligible employers pay their employees. Employers who received loans through the PPP are not eligible.
All dealerships should be concerned about the impact of an outbreak among their employees, but dealers should also be concerned about what happens when just one employee tests positive. NADA's
blog post and
archived webinar are important resources for dealers.
Dealerships must also be vigilant on following CDC guidelines and practicing social distancing. The impact of a positive diagnosis on both the risk of spread and the impact on business operations will be significantly lessened for dealerships that have implemented processes to follow these guidelines.