On Friday the House passed and the president signed the CARES Act, which enacts provisions including a loan program for small businesses (businesses with fewer than 500 employees) and tax relief for individuals and businesses. NADA has drafted a summary of dealer-related provisions as well as a memo explaining 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.
Iowa Small Business Relief Program Deadline March 31
The deadline for the new Small Business Relief Grant Program is 12 p.m. on March 31. The program offers grants ranging from $5,000-$25,000 to businesses with 2-25 employees prior to March 17. All applications received before the deadline will be reviewed—the program is not first-come-first served.
IADA encourages dealers to review both the Door-to-Door Sales Act and the prohibited practices section of the Motor Vehicle Franchise Act to make sure their dealership's remote selling tools and procedures comply with Iowa law. Some procedures will trigger the Door-to-Door Sales Act and some procedures might be prohibited. But technology and tools like phones, email, DocuSign, appointments, and mail while social distancing can allow dealerships to continue to sell cars without violating the prohibited practices section of the Motor Vehicle Franchise Act.
Remember, when the Door-to-Door Sales Act is triggered, the customer must sign a notice of cancellation. (IADA Printing & Promotions sells these forms. Email email@example.com to order.)
IADA encourages dealerships, especially dealerships with collision centers or paint booths, to assess their face mask supply and check with their local emergency management agency coordinator to see if they can be redeployed for healthcare purposes.
If your dealership is able to make a supply donation, please let us know.
IADA is continuing to operate, but doors are locked to the public and most employees are working remotely. The best way to reach an IADA employee during this time is by email or by calling their direct phone number. A staff directory is located on IADA's website.