March 26, 2020 -
NSGA is pleased to see the Senate approve the "CARES Act" (Coronavirus Aid, Relief and Economic Security Act). The $2 trillion economic stimulus package related to the COVID-19 pandemic will go to the House of Representatives for an expected vote on Friday and the final step would be President Trump's signature.
One of the key points regarding the Small Business Administration loan availability for sporting goods retailers and dealers is the incentive to retain your employee base as we navigate this ongoing crisis.
The Paycheck Protection Program incentivizes employers to maintain their payroll with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans.
The package will include a $17 billion emergency grant program and a $377 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
Loan payments can be deferred from between 6 and 12 months and can convert to a reimbursement.
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 glad to see the Senate unanimously pass this stimulus package and now we hope the House of Representatives will follow suit so everyone hurting from the COVID-19 pandemic can start getting the relief they need," said NSGA President & CEO Matt Carlson. "It is important that independent retailers and dealers who need a Small Business Administration loan are prepared to do so as soon as the program is up and running.
"Treasury Secretary Steven Mnuchin said Wednesday that if the bill is executed this week, in a week's time, small business owners should be able to go to their FDIC insured financial institution, apply for,
and receive
funds on the same day."
NSGA will continue to update you with information as soon as it becomes available on all aspects of the economic stimulus package and issues from the COVID-19 pandemic. Make sure you stay on the lookout for more communication from us on this issue.
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.
NSGA will be here to help as best we can with the numerous challenges ahead.
Click here
for the NSGA COVID-19 Resources and Information Page. We are updating it with tools to help you operate your business. If there are resources you are interested in or questions you have contact us at
info@nsga.org
.
The NSGA team is working remotely through at least April 7. Contact us (847) 296-6742 or
info@nsga.org
.
Please
join NSGA
to help with this challenge and the ones that are ahead. Our strength is in all of us banding together.
