Yesterday the U.S. Senate voted on the House-passed Coronavirus Response legislation (H.R. 6201 or “Phase 2”) and sent it to the President, who signed it into law last night. Phase 2 would provide individuals affected by the coronavirus paid leave, expand unemployment insurance, and provide tax credits to employers to offset the costs of providing emergency paid leave. Here is a
summary of Phase 2
Financial assistance to help employers through the crisis is already underway with the Senate now working on Phase 3, which could include tax relief, aid for affected industries, cash checks to Americans, and small business support.
KADA and NADA recognizes the urgent need for economic assistance and is working closely with Governor Kelly, Congress and the Trump Administration to create liquidity for dealerships in the form of protecting the functionality of the credit markets and tax relief. It is likely at this time that the financial assistance in Phase 3 will include general Main Street Business relief. NADA, and almost 100 other groups, today sent a
letter to the President and Congressional leaders
highlighting the severe economic burdens on the small business community and calling for needed remedies.
We have forwarded this letter to the Kansas Congressional offices and have stressed the importance of Phase 3 to them explaining that dealerships have very high fixed costs and the unique liquidity problems of dealerships. We also explain that dealerships are 19% of the nation’s retail economy.
KADA and NADA continues to work with other business organizations, as well as legal and tax experts, to assess key employer provisions and to provide input to Capitol Hill to advocate for dealers and our employees. We are also working with our network of accountants who represent dealers to obtain additional data on dealership cash flow and liquidity, to assist our advocacy on the Hill, with implementing regulations, and in our engagement with OEMs and lenders.
KADA will provide updates on critical legislative and regulatory measures as they become available.