For dealers, the most anticipated of these initiatives is the Paycheck Protection Program. Treasury Secretary Steve Mnuchin has announced that Paycheck Protection Program applications can be submitted starting on Friday April 3rd. You can find the loan application and more details on the program here.
The Paycheck Protection Program:
- Provides $350 billion for 100 percent federally-guaranteed loans for eight weeks.
- Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities(due to likely high subscription, at least 75 percent of the forgiven amount must have been used for payroll).
- Loans will be deferred for six months.
- Eligible businesses must have paid salaries and payroll taxes prior to February 15, 2020 and have fewer than 500 employees.
- For those auto groups with more than 500 employees, eligibility affiliation rules may be waived under certain criteria. Click here for information from NADA on how this applies to dealers.
- SBA-certified lenders and non-SBA lenders will be authorized to make Paycheck Protection loans for quicker processing. You can access the SBA Lender Lookup tool HERE.
- Loans will not require an application fee, personal guarantees, collateral, or closing costs.
NJ CAR encourages dealers to explore this option for their stores and employees and apply as quickly as possible, as there is a spending cap.
For more information, you can access the recording of NJ CAR’s CARES Act & SBA Loan Assistance webinar held on April 1st. If you have access to the member side of the NJ CAR website (www.njcar.org), you can click HERE for the webinar recording and slides.
If you don’t have a login for the Member’s Side of the NJ CAR website:
- Click on the Members’ Portal in the top right-hand side of the NJ CAR homepage (www.njcar.org)
- Click on the Sign Up tab and enter your email, password, name, title, and dealership name and click Submit.
- Your submission will be reviewed quickly and you’ll receive an email when you have been confirmed and can access the Members’ side of the website.