March 25, 2020 -
NSGA is pleased to see lawmakers reach an agreement on the $2 trillion economic stimulus package related to the COVID-19 pandemic. We are still researching details, and the final package has not yet been voted on, but here's what we know at this point with respect to business emergency assistance.
The package will include a $10 billion emergency grant program and a $350 billion emergency loan program through the Small Business Administration. The SBA 7(a) emergency loans include improvements that NSGA fought for with lawmakers so sports retailers and dealers have a mechanism to keep their employees on the team. Those improvements include:
- No application fee
- No collateral required
- No personal guarantees
- Applicants don't have to prove financing is unavailable elsewhere
- Forgiveness of loan for eligible expenses including:
- Payroll expenses
- Employee Benefits
- Rent
- Mortgage obligation interest
- Utilities
The pending economic stimulus bill also includes a technical correction to the Tax Cuts and Jobs Act which became law in late 2017. This includes a corrected “qualified improvement property” provision which will allow for non-structural assets to the interior of a building, after the building has been placed in service, to benefit from bonus depreciation. All businesses considering such improvements should consult with their tax preparer.
“We are pleased to see agreement on this stimulus package designed to help so many people who are hurting as a result of the COVID-19 pandemic,” said NSGA President & CEO Matt Carlson. “The small business loan package provides some significant relief for independent retailers and dealers in the sporting goods industry."
NSGA will continue to update you with information as soon as it is becomes available on all aspects of the economic stimulus package and issues from the COVID-19 pandemic. Stay on the lookout for more communication from us on this issue. You can also go to
www.nsga.org
for updated information and resources related to operating your business during this difficult and fluid time. Please know that we are also conducting dialogue with the supplier community with respect to extending payment terms and conditions beneficial to our retailer and dealer members. We're asking them to be flexible in their approach.
Thank you again to everyone who reached out to their senators and representatives to push for support of NSGA's proposed relief measures for sporting goods retailers and dealers. NSGA will be here to help as best we can with the numerous challenges ahead. NSGA staff are working remotely and can be contacted at (847) 296-6742 or
info@nsga.org
.
