Important Resources for Small Businesses

Dear WANADA Members,

Over the weekend, the Small Business Association issued an interim final rule related to the  Paycheck Protection Program's loan applications. The interim rule, and the associated summary of that rule, reinforce that nearly any small business with under 500 employees is eligible to apply for a PPP forgivable loan under the outlined guidance published late last week that covers the full parameters of the program.

In addition, the interim final rule codifies what we have reported previously: that dealers with multiple locations and more than 500 employees across their full business are also eligible for PPP loans, provided that they have an appropriate franchise identifier code with the SBA. 

NADA's list of OEM Franchise Identifier Codes can be found at this link; please bookmark that link as NADA will continue refreshing it on a rolling basis as more OEMs receive codes. Thank you once again to our partners at NADA for their hard work on this important matter.

As we also mentioned last week, NADA has produced a great  CARES Act Frequently Asked Questions guide, which helpfully outlines what steps PPP loan applicants need to take in order to have the low-interest loans converted into grants. One of the most notable components is that, based on the Treasury Department's interim guidance, 75 percent of any forgivable loan amount must be used exclusively on payroll costs. 

NADA's publication also details other credits and loans available through the CARES Act, including Economic Injury Disaster Loans and advances, the Federal Reserve's soon-to-be-released  Main Street Business Lending Program, and the Employee Retention Tax Credit. The ERTC and EIDL provisions, in particular, are good resources for impacted businesses who have low payroll costs relative to their overall expenses. The Treasury Department also has put together a helpful overview of the federal resources available to businesses of all sizes.

Local Government Relief for Impacted Businesses

Montgomery County and Prince George's County have created their own relief funds for local businesses that have been harmed by the COVID-19 crisis. The Prince George's County Business Relief Fund will be accepting applicants starting on April 13; qualified for-profit businesses based in the county will be eligible for up to $100,000 in low-interest loans (and $10,000 in grants) to help cover short-term payroll costs, rent, and other operating expenses. 

Montgomery County's Public Health Emergency Grant Program will provide up to $75,000 in grant funding for small businesses with 100 or fewer employees to cover operating costs, as determined by the county's Economic Development Fund. We will update you with more details on how to apply, and more details on eligibility once they have been published.

As we have mentioned in the past, Maryland has also committed $ 130 million for loans and grants to impacted businesses in the state. More details can be found through the state's Department of Commerce, or through Maryland's COVID-19 Business Response website.

Please also note that D.C., Maryland, and Virginia have all extended their tax filing and payment deadlines at least somewhat, and counties including Fairfax have authorized some relief for certain vehicle and real estate tax payments.

Please let me or Joe Koch ( know if you have any questions about the resources mentioned in this letter. And please continue referring to WANADA's COVID-19 Information Library for a full list of resources important to dealers and suppliers during this time.

John O'Donnell
WANADA President and CEO