We continue to hear from Dealer Members who received PPP loans in excess of $2 million. We have been in touch with NADA for guidance. The best advice at present is to wait as long as you possibly can to respond to your lender.
Although there is a 10-day response time, there is a huge movement in DC involving 80 large national associations. They are asking for a temporary delay while the details related to the questionnaire can be sorted out. These same 80 associations have sent letters to the SBA, Treasury and Congress (attached below) asking for a temporary delay and revisions to the forms being required.
You should ask your lender to support your delay in responding because most of the lender organizations are also opposed to this new SBA process. In fact you should ask your lender to hold your response or better yet withdraw the request until this matter is clarified.
Businesses are asking for an extension while the form is being reviewed so your premature response may not be advisable. As always this is not NADA or FADA legal advice. There are some lawyers assisting FADA members with their responses.
We are told that Senator Rubio is involved in the efforts to get the SBA to stand down. FADA is reaching out to him as one of the chief architects of the original program.
We understand that some of you who are over $2 million may have applied months ago and just now received the new letter asking you to respond to your lender in 5 days. Others have just received it in the last 2 weeks and have not responded. Again, please ask your lender for guidance on the completion of these forms as they may be revised in the very near future.
Please read NADA’s recent article entitled “SBA issues loan certification questionnaire for PPP borrowers with loans of $2M or more. and again, see the attached letters below.