NADA also updated the CARES Act FAQs to reflect the new forgiveness elements. KADA encourages dealers to review all items carefully and in particular:
Question 20: How will the Small Business Administration review a borrower's good-faith certification?
Question 35: What portion of the PPP loan is forgivable?
Question 38: What could jeopardize loan forgiveness (non-qualifying costs)?
Question 39: Is there anything else that could jeopardize the ability to have the loan forgiven?
As Congress begin efforts to rework PPP, recent reports show many businesses are struggling with the PPP rules. Congress is preparing to make significant changes to the PPP after small-business owners expressed difficulty accessing the funds. The changes will likely include more spending flexibility for employers. Under the current terms, 75% of PPP funds must be spent on employee salaries to qualify for loan forgiveness.
We would also like to remind you that NADA's Lifeline Series webinars are available to NADA members 24/7, free of charge and can be accessed at the NADA Coronavirus Hub. There is over four weeks of material ranging on a number of topics addressing each area of your dealership departments. The most recent webinars are listed below:
Video Communication: Building Trust in a Virtual Environment
Creating the New Normal in Fixed Operations
Best Ideas from ATD 20 Groups, Part 2: In Times of COVID-19 Pandemic
Proactive Recovery: Comprehensive Planning for Reopening Your Dealership
Clarifying Guidance from SBA and Treasury
KADA will continue to provide updates on critical legislative and regulatory measures as they become available. They will also be posted on www.kansasdealers.org.