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The PPP is working to keep dealership employees on the payroll

June 26, 2020
Before COVID-19 struck, America’s franchised dealerships – the majority of which are small business as defined by the Small Business Administration – collectively employed more than 1.1 million employees and provided $69 billion in wages to those employees. Thanks to the federal Paycheck Protection Program, those wages have remained intact for hundreds of thousands of those dealership employees.
That is exactly what Congress intended when it created the program, meaning the program is working exactly as it should.
The Small Business Administration and the Department of Treasury recently announced that the SBA will be announcing additional details about the PPP program, including the names of businesses that secured a loan, their addresses, NAICS codes, ZIP codes, business types, demographic data, nonprofit information, jobs supported, and loan amount in the following ranges:
• $150,000-350,000
• $350,000-$1 million
• $1 million-$2 million
• $2 million-$5 million
• $5 million-$10 million
Those categories account for nearly 75% of the loan dollars approved. For loans under $150,000, totals will be released, aggregated by ZIP code, by industry, by business type and by various demographic categories.
As of June 20, 5,456 lenders have approved more than 4,6 million PPP loans totaling $514 billion, with $128 billion still available to be lent to qualifying businesses which apply prior to June 30. 2020. The SBA’s complete June 20 PPP report is available here.
By industry, PPP loan disbursements were directed to:
• Health Care and Social Assistance: 487,386 loans totaling $66.5 billion (12.93%)
• Professional, Scientific, and Technical Services: 608,025 loans totaling $65.6 billion (12.74%)
• Construction: 446,670 loans totaling $63.9 billion (12.41%)
• Manufacturing: 223,452 loans totaling $53.6 billion (10.41%)
• Accommodation and Food Services: 354,085 loans totaling $41.4 billion (8.06%)
• Retail Trade: 432,933 loans totaling $39.9 billion (7.75%)
PPP loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. Loan recipients must maintain at least 75% of total salary prior to the pandemic.
If the employee’s pay over the eight-week loan period is less than 75% of the pay they received during the most recent quarter in which they were employed, the eligible amount for forgiveness will be reduced by the difference between their current pay and 75% of the original pay.