Dealership Operations During the COVID-19 Pandemic
IADA has compiled the latest coronavirus-related updates into one email for you. Let Brittany Bungert know if anyone else at your dealership should be on this distribution list.
Paycheck Protection Program (PPP)
Loan Eligibility
In the past couple of weeks, a few large or publicly-traded companies have come under scrutiny for obtaining PPP loans. In the wake of that news, NADA released an analysis on whether businesses owned by large companies qualify for PPP loans that is worth reading for dealerships that obtained or are in the process of obtaining PPP loans.

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."

Tax Considerations
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.

Main Street Lending Program Updated
The Federal Reserve Board announced changes to the Main Street Lending Program that provide additional liquidity to small and medium-size businesses. NADA's overview contains information for dealerships considering utilizing the program.

Department of Labor Issues Employee Benefit Plans Guidance
The Department of Labor's Employee Benefits Security Administration issued deadline relief and other guidance related to employee benefit plans. Certain timeframes impacting participants' rights to healthcare coverage and continuation of coverage under COBRA, and the time for plan participants to file or perfect benefit claims or appeals of denied claims have been extended.

IRS Releases Employee Retention Tax Credit FAQ
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.

The IRS released an FAQ addressing questions employers have about the tax credit, including questions addressing eligibility, qualified wages, and how to claim the credit.
Health & Safety Guidance Updated
Guidance for Iowa Businesses Experiencing COVID-19 Outbreaks
The Iowa Department of Public Health (IDPH) last month issued Guidance for Iowa Businesses Experiencing COVID-19 Outbreaks among Employees. The document includes information on preventing, detecting, and managing outbreaks.

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.