Paycheck Protection Program (PPP) Loan Forgiveness Guidance
To date, many dealers have successfully secured loans through the Paycheck Protection Program (PPP). Dealers that use the loan proceeds in agreement with the intent of the CARES Act may have much of the loan forgiven. It is important for dealers to begin to understand this program and how to maximize the portion of the loan that may be forgiven. The National Automobile Dealers Association (NADA) has released PPP Loans: Use of Proceeds and Forgiveness, which is NADA’s preliminary guidance on the forgiveness elements of the PPP loans. To the extent that a PPP loan is forgiven, it effectively becomes a grant from the federal government to the borrower. Please note that, as the document stresses, this information is preliminary and does not reflect the additional guidance we expect to obtain from SBA/Treasury, which will be circulated as soon as it is received. The guidance will be updated as we obtain additional information from the SBA and Treasury Department.