Paycheck Protection Program Flexibility Act Signed Into Law:  NADA Revises PPP Loan Guidance

This morning the President signed into law the Paycheck Protection Program (PPP) Flexibility Act of 2020, which makes several significant modifications to the PPP provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These modifications are important to dealers who have applied for and received PPP loans and who intend to have their loan proceeds forgiven. A revised version of NADA’s document entitled PPP Loans: Use of Proceeds and Forgiveness lists the new PPP Flexibility Act modifications and reviews important issues involving the use and potential forgiveness of PPP loan proceeds. Additional SBA/Treasury guidance will be forthcoming.

NADA has recommended to its members with PPP loans that they put off applying for forgiveness until after consulting with their legal, accounting, and banking experts regarding how these new modifications will apply to their specific circumstances.