U.S. Passes CARES Act

29 Mar 2020 4:09 PM | Myron Rau (Administrator)

U.S. House Passes CARES Act

Today the U.S. House passed Covid-3, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, clearing the $2.2 trillion measure; the President is expected to sign the bill into law promptly. Congress acted with extraordinary speed: the measure was drafted in the Senate and approved by the entire Congress in just over a week. 

The bill contains NADA-supported provisions which we have previously summarized, such as the new guaranteed loan program for small businesses and the extensive tax relief for individuals and businesses. One aspect of the bill is especially noteworthy for dealers: in general, the new small business loan will be limited to businesses with 500 or fewer employees.  However, as explained in the attached memo, the bill includes a provision that will enable certain franchised dealers to qualify for a waiver of the affiliation rules that typically apply for SBA loans. 

Thanks to the many dealers, NADA directors and state and metro association executives who worked in support of this bill and the provisions favorable to dealers.

National Automobile Dealers Association