Important Updates for Dealers and Suppliers
Dear WANADA Members,
There have been a few important developments at the state and federal levels over the past 24 hours or so, and I wanted to make sure you were all aware of them. As always, please refer to
WANADA's COVID-19 Information Library for additional links and details about the resources discussed in this memo.
SBA Closes Applications for PPP and EIDL
First,
the White House has reported that the initial $350 billion for the SBA's
Paycheck Protection Program has been depleted. Congress is debating the details of a follow-up rescue package, but legislative leaders from both parties seem to agree that the PPP fund needs at least $250 billion in additional funding, and we are hopeful that it will be approved in the coming weeks.
While the SBA is not currently accepting additional PPP applications, news reports indicate that applicants who have been approved, but who have not yet received funds,
should ultimately receive the money from their
7(a) Lender. It appears that, as of now, just a small segment of the approved funds have actually been disbursed, which of course is very disconcerting.
For those who
have received approval,
please review NADA's latest guidance on how to use the proceeds in a way that will lead to the maximum amount of loan funding being converted into grants.
The SBA has also stopped taking applications for
Economic Injury Disaster Loan advances, which provided up to $10,000 for impacted businesses. We will update you if this fund is replenished in a new appropriations bill.
The SBA
has put together a report
on all PPP approvals through this past Monday, when $247 billion in funds had been allocated. Businesses classified as "retail trade" have received at least $21.2 billion in funding, while $7.8 billion has gone to companies in the "transportation and warehousing" sector.
Maryland County Resources for Impacted Businesses
We mentioned yesterday that Montgomery County is now accepting applications for their
Public Health Emergency Grant program. Small businesses with 100 or fewer full-time equivalent employees, who employ a majority of their staff and make a majority of their sales in the county, are eligible for up to $75,000 in grant funds.
Applicants can apply for this relief in addition to funds that the state and federal governments have made available; please read the
county's FAQ page regarding the program for more information.
We anticipate that this program will prove to be very popular, and encourage you to apply expeditiously if you believe you qualify and are in need of the funding.
Prince George's County has also begun accepting applications for their
COVID-19 Business Relief Fund, which will provide up to $100,000 in low-interest loans (and $10,000 in grants) to qualified for-profit businesses based in the county. The county's fund requires businesses to have already applied for state and federal relief funding in order to qualify; please review the
program's FAQ page before applying.
Micro-Loan Program for Small Businesses in Fairfax County
Virginia's 30 Day fund is also providing micro-loans to businesses with 30 or fewer employees, who have also applied for federal support and not yet received it. For more information,
please click here.
Maryland Statewide Face Mask and Distancing Ordinance
Yesterday, Maryland Gov. Larry Hogan
issued an executive order requiring patrons in retail stores and on public transit networks statewide to wear face coverings,
as described by the CDC. It also outlines steps that retail establishments must take in order to more effectively enforce social distancing measures in their facilities. This order takes effect on Saturday at 7 a.m. and potentially carries fines and criminal penalties for both businesses and individuals who violate the ordinance.
Our interpretation of Section I, part e of the order (which defines "retail establishments") leads us to believe that this order does not itself mark any real change from the status quo for dealers and repair facilities. However, basically every Maryland county in WANADA's territory
has already enacted a mask ordinance that requires all business owners to provide employees with face coverings, and for those employees to wear them at work.
We encourage all our dealers and suppliers to read Gov. Hogan's executive order, and to proceed as if the directive applies to their business and employees. As we have long noted, it is vitally important that our dealers take great care to ensure that their workers and customers are as safe as possible, whether there is potential legal exposure or not.
There is stringent enforcement going on across Maryland to ensure that our dealers are complying with
all of the state's COVID-19 executive orders, along with those issued by county governments. We are very fortunate to be able to continue sales and repair operations during this crisis, and that's a reality that could change at any time.
Virginia Non-Essential Business Restrictions Extended
The extension of the order does not change any dealership operations in Virginia; that said, we encourage all businesses in the commonwealth to continue their strict adherence to the guidelines. Gov. Northam has the power to amend or revoke this guidance at any time, in a way that would be detrimental to dealers, so we must take great care to ensure that he doesn't feel compelled to take that step.
Governor Northam did not make any sort of mask requirement announcement yesterday, but at his press conference did make clear that he strongly encourages their use and expects them to be a major component of whatever large-scale reopening we see in the relative near future. Please prepare for a situation in which your employees and patrons are required to use masks in your stores across the commonwealth.
Summary
We are hopeful that, at some point in the near future, we'll be able to somehow return to a sense of relative normalcy. But it also seems very clear that, until we have a widespread vaccine, safety measures like wearing masks and having ample cleaning supplies available will be the norm. We appreciate your commitment to safety during this harrowing time, and we stand ready to assist you in any way we can.
As always, you can contact me or Joe Koch (
jk@wanada.org) if you have any questions.
