Quick tips on new Federal loans under COVID-19
To help with your costs of new employee leave and retention of personnel the Federal CARES Act and FFCRA are now available to you. Both DHG and NADA held webinars today on these new provisions.
- The Paycheck Protection Program (PPP) begins accepting applications through authorized lenders (SBA backed) on Friday April 3, 2020
- Applications end on June 30, 2020
- Loan payments will be deferred for 6 months
- Loan forgiveness can be as much as 70-100% of the loan amount based on expenses
- The interest rate is 0.5%
- Dealers under 500 employees can apply or, if over 500 you can apply if your OEM has a Franchise Identifier Code, as these employee counts can be considered separate locations
- Employees will be getting E-checks ($1200/$2400 plus $500 per qualifying child) without taking action
You must get help from your CPA or attorneys on all of the details, as these calculations are complicated but doable.