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COVID-19: What Dealers Need to Know
During this extraordinary time in our history we are all working to react appropriately to events and concerns related to the rise of COVID-19. As a result, MADA has compiled the following list of resources to help dealerships prepare and respond to this new reality.
As always, if you do not see your questions addressed in the materials below, please reach out to MADA staff at 651-291-2400. We are here to assist you and be a resource during this difficult time.
General Information
In the Workplace
NEW! Statewide Mask Mandate
State of Minnesota COVID Preparedness Plan Template
CDC: COVID Resources for Businesses
MDH: Visitor and Employee Health Screening Checklist
Complynet: Dealership Outrbreak, Epidemic and Pandemic Response Plan Template
Human Resources
U.S. Department of Labor (DOL) Compliance Poster
DOL: Families First Coronavirus Response Act: Employer Paid Leave Requirements
NADA: Families First Coronavirus Response Act Q&A
Employee/Employer Rights and Obligations
Expanded Unemployment Benefits
Tax Information
IRS: Guidance on Employee Retention Tax Credit
IRS: FAQ on Employee Retention Tax Credit in CARES Act
IRS: FAQ on Expanded FMLA Tax Credit in FFCRA
Minnesota Department of Revenue. Minnesota’s 90-day extension of the April 15 payment and filing deadline is for individual taxpayers for the 2019 income tax year and pass-through entity income if paid through the individual income tax. It does not include an extension for business taxes that are paid at the entity level. More guidance from the agency can be found here.
Federal Actions
DHS Guidance on Essential Critical Infrastructure.The U.S. Department of Homeland Security has issued guidance that includes automotive repair and maintenance facilities on the list of the nation’s essential critical infrastructure workforce.
Small Business Loans:
- The CARES Act established the Paycheck Protection Program (PPP), which provided 100% federally guaranteed loans to small businesses, which may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. However, the program as first enacted proved to be fraught with uncertainty and more cumbersome than it had been envisioned. In response, Congress enacted the Paycheck Protection Program Flexibility Act, which President Trump signed into law on June 5. The modifications to the PPP are important to dealers who have applied for and received PPP loans and intend to have their loan proceeds forgiven. To learn about the details of the Act and new rule from the SBA, and get your questions answered, join MADA for a seminar on Thursday, June 25.
UPDATED 6/22: NADA Guidance: PPP Use of Loans and Forgiveness
NADA: FAQ on the Paycheck Protection Program
- The Small Business Administration will work directly with state governors to provide targeted, low-interest loans to small businesses that have been severely impacted by the Coronavirus (COVID-19). The SBA's Economic Injury Disaster Loan program provides working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue. These loans, at a rate of 3.75%, can go toward working capital to meet needs including payroll, accounts payable, and fixed debt payments that can’t be paid due to the COVID-19 pandemic. To apply, click here.
Federal Legislation:
- On June 4, Congress passed the Paycheck Protection Program Flexibility Act which:
- reduces from 75% to 60% the percentage of forgivable expenses that must be allocated to payroll costs;
- extends the covered period for forgiveness calculations from eight weeks to 24 weeks from the origination date of the loan;
- expands the timeframe for making the determination for rehiring from June 30 to December 31, 2020;
- provides partial forgiveness reduction relief in the event a borrower can document that it is unable, on or before December 31, 2020, to either 1) rehire or replace individuals who left its employ during the pandemic or 2) return to its pre-COVID level of business activity; and
- repeals the provision of the CARES Act that barred PPP forgiveness recipients from deferring employer payroll taxes.
- On April 23, Congress passed the Paycheck Protection Program and Health Care Enhancement Act to supplement the funding it provided in the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act. The latest bill includes an additional $310 billion to the Paycheck Protection Program (PPP) emergency lending program, which provides 100% federally guaranteed loans to small businesses, which may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
- The U.S. Congress has passed the Families First Coronavirus Response Act, which includes provisions for increased child-care, paid sick leave, increased SNAP, extended unemployment benefits, free Coronavirus testing, protections for health care workers, strengthened Medicaid, and restrictions on price gouging. See above links under 'Human Resources' for specifics.
State Actions
UPDATED 7/23! State Emergency Declarations. To date, Governor Walz has issued over 70 executive orders in response to the COVID-19 pandemic. The latest (EO 20-81) requires all Minnesotans to wear fask coverings when inside businesses or other public settings. This applies to dealership employees, customers, and visitors, with narrow exceptions. Dealerships must also update their COVID preparedness plans to incorporate the requirements of the mask mandate and post at least one sign in a place visible to everyone who enters the building. The latest order does not lift the restriction that sales be conducted by appointment only.The first executive order, a declaration of a peacetime emergency, established the governor's authority to respond to the crisis and has also been continued until August 12, 2020.
State Legislation. The Minnesota Legislature has enacted several bills in its response. House File 4531 extends the expiration date of drivers' licenses that expire during the period of the peacetime emergency which began on March 13.
State Portal. There is a state portal where Minnesotans can find all COVID-19 resources as well as have access to a dashboard which shows the state's response and preparation capacity: https://mn.gov/covid19/
Stay Safe Guidance for Minnesota's Transportation Sector
DEED: Guidance on Safely Returning to Work
DEED: COVID Resources for Employers and Workers
MADA Actions
MADA continues to monitor the state's response and is proactively working to ensure dealerships are getting the support they need during this difficult time.
NEW! MADA Alert on Statewide Mask Mandate: July 23, 2020
MADA Alert on COVID Preparedness Plans and PPP Changes: June 23, 2020
MADA Alert on Stay Safe MN Order: May 14, 2020
MADA Alert on Extension of Stay-at-Home Order: April 30,2020
UPDATED 4/30: FAQ on Stay-at-Home Executive Orders
New Products to Keep Dealership Customers and Employees Safe
MADA Alert on Walz Approach to Reopening MN: April 24, 2020
MADA Alert on Extension of Stay-at-Home Order: April 8, 2020
MADA Alert on Deputy Registrars Re-opening: April 6, 2020
MADA Alert on IRS Tax Guidance: April 2, 2020
MADA Alert on Notice to Employees: March 31, 2020
Video Message from MADA President Scott Lambert (3/27/20)
MADA Alert with Guidance on Stay-at-Home Order: March 26, 2020
MADA Alert on "Stay-at-Home" Order: March 25, 2020
MADA Alert on FFCRA: March 25, 2020