NADA Provides Guidance for Dealers with PPP Loans

Review NADA’s PPP Loans: Use of Proceeds and Forgiveness NADA Preliminary Guidance, which provides valuable insights on the forgiveness elements of the PPP loan program.

Many dealers have been able to obtain PPP loans and need further clarification on how to properly apply them. NADA’s latest analysis provides guidance for dealers on how they can use the proceeds from the loan; where they can apply them; and to what extent the loan can be forgiven. If a PPP loan is forgiven, it effectively becomes a grant from the federal government to the borrower. NADA urges all dealers with a PPP loan to review the guidance carefully.  Note: this information is preliminary and does not reflect the additional guidance NADA expects to obtain from SBA and Treasury, which will be circulated as soon as it is received.

Download NADA’s guide Dealership Health and Safety Concerns During A Pandemic, which outlines steps dealerships can take to provide a safe environment for their employees and what steps to take if an employee tests positive for COVID-19.

The U.S. Treasury Department released updated Paycheck Protection Program Loans: Frequently Asked Questions for borrowers and lenders. For additional updates, visit Treasury.gov/CARES and SBA.gov/PayCheckProtection.

The Interim Final Rule announced additional eligibility criteria and requirements for certain loan pledges. The official version will appear in the Federal Register.

In addition, the Treasury’s website has updated its CARES Act page to include specific sections on: 

• Assistance for American Workers and Families

• Assistance for Small Businesses

• Assistance to State and Local Governments

• Preserving Jobs for American Industry

Click here to download NADA’s PPP Loans: Use of Proceeds and Forgiveness NADA Preliminary Guidance