We have been consulting financial experts to help provide our dealers with the a breakdown of the federal offerings available to you during this unprecedented times. Below are highlights of the current federal emergency financial resources that may be available to your business.
The following is for informational purposes only, and should not replace legal advice.
Paycheck Protection Program (CARES Act)
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone. The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Loan payments will be deferred for 6 months.
Economic Injury Disaster Loan
Provided by the Small Business Administration, an Economic Injury Disaster Loan (EIDL) provides up to $2 Million to help you meet necessary financial obligations that your business could have met had the coronavirus not occurred. It provides relief from economic injury caused directly by the pandemic and permits you to maintain a reasonable working capital position during the period affected by the disaster. EIDLs do not replace lost sales or revenue.
