NADA: The CARES Act and Dealerships FAQ
/NADA has updated its CARES Act FAQs that include information on the Paycheck Protection Program (PPP). The FAQs incorporate the new guidance on PPP loans and information on SBA Economic Injury Disaster Loans, tax provisions and changes to unemployment assistance.
On April 6, the Treasury Department also released FAQs on the PPP.
On April 2, the Small Business Administration issued an interim final rule on the implementation of the PPP of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The rule clarifies the computation of payroll costs. Specifically, the following costs are not included when computing payroll costs for the initial loan application and for loan forgiveness: Federal employment taxes imposed or withheld between February 15, 2020, and June 30, 2020, including the employee’s and employer’s share of FICA and Railroad Retirement Act taxes; and income taxes required to be withheld from employees.
Bottom line: all the federal taxes imposed or withheld during the 12 months prior to the loan may be included in payroll costs, except for the period shown above.
Dealers can submit PPP applications beginning today. PPP loans will be made first-come, first-served, with funds available until they’re exhausted. Dealers interested in PPP funding should contact their lenders as soon as possible to secure funding before the appropriated money has been exhausted.
Click here to download NADA: The CARES Act and Dealerships FAQ
