IADA E-Bulletin
Facebook Twitter LinkedIn    
Inside this issue

Visit Our Website


Join our mailing list!

Do you know of other member dealership employees who should be receiving the IADA Electronic Bulletins? Let us know! Send an email to Meghan Sander (msander@illinoisdealers.com), Director of Communication, with the contact information of people who should be on our distribution list.


Mike Ettleson
Ettleson Cad-Bu-GMC, Inc.

Vice Chairman
Rick Yemm
Yemm Chev-Bu-GMC-Chry-Jeep


Sean Grant
Landmark Chry-Jeep-Fiat

Peter Sander

IADA Staff Contacts:
Ph# 1-800-252-8944

Pete Sander
Ext. 103

Larry Doll
Ext. 105

Mark Harting
Administrative Services
Ext. 110

Mike Healey
Member Services
Ext. 107

Joe McMahon
Ext. 113

Meghan Sander
Member Communications
Ext. 109


Your IADA Partner
Moving Vehicle Registration into the future

May 13, 2020   Volume 2020, Issue 13

  Revised Guidance Regarding Good Faith Certification for PPP Loan Eligibility  
  The Small Business Administration has issued Frequently Asked Questions guidance to assist with interpretation of the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA has revised its FAQ guidance several times. A link to the most recent FAQ guidance is available here.

Earlier versions of the FAQ guidance had inserted a requirement that PPP borrowers make a good faith certification by May 7th, later extended to May 14th, that the loan request is necessary based on current business activity and ability to access other sources of liquidity. The older SBA guidance required a borrower to certify that "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant."  

The SBA's certification requirement created a great deal of confusion for PPP borrowers. Fortunately, today's guidance adds question 46, which provides that a PPP borrower with a loan amount under $2 Million is considered to have met the good faith certification requirement for PPP loan eligibility. Borrowers with a loan amount of $2 Million or more, will still be able to make a good faith certification under the PPP program based on their individual circumstances. In the worst case scenario, if the SBA determines that a borrower was ineligible for the PPP loan, SBA will seek repayment of the loan and make the borrower ineligible for loan forgiveness and, if the borrower repays the loan, SBA will not pursue administrative enforcement.   
Text of FAQ # 46
Question: How will SBA review borrowers' required good-faith certification concerning the necessity of their loan request?

Answer: When submitting a PPP application, all borrowers must certify in good faith that "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA's review of PPP loans with respect to this issue: Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.

SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.

Importantly, borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form. If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. SBA's determination concerning the certification regarding the necessity of the loan request will not affect SBA's loan guarantee.


  Regional Reopening Plan  
  Recently, Governor Pritzker announced Restore Illinois, which is a regionalized, phased reopening plan for Illinois (available here). The plan divides Illinois into 4 different regions and includes 5 separate phases that gradually eliminate different restrictions from the stay at home order as each region meets certain benchmarks. Illinois has been in Phase 2 since May 1st, and each phase lasts for a minimum of 28 days, meaning that the earliest a region could move to Phase 3 is May 29th, assuming that it meets the required benchmarks. 

For a region that moves to Phase 3, employees of non-essential businesses would be permitted to return to work (with tele-commuting still encouraged where possible), subject to Department of Public Health (DPH) guidance and non-essential retail would be permitted to reopen with capacity limits and subject to DPH guidance, including face masks. It appears that dealers in a region that reaches Phase 3 would no longer be required to limit sales to appointment-only. Employers who bring employees back to work would be encouraged to provide accommodations for COVID-19 vulnerable employees.  

The Department of Public Health has posted the metrics that it will be using to determine whether a region is eligible to move into a new phase, click here. If DPH revises its website in a manner that makes it possible to track whether a region is advancing to the next phase, we will keep you posted. 



  IADA-CVR Hosts Operational Webinar  
  IADA and our Electronic Registration & Title Partner, CVR, hosted a Zoom Operational Conference call on Wednesday, May 13th with over 70 participants joining the virtual meeting. Participating out of the IADA office were representatives of the SOS, Department of Revenue, CVR and IADA's Mike Healey and Larry Doll.

Updates were provided regarding SOS TRP usage, odometer changes and pricing for plates and registration; Department of Revenue discussed trade in credits, reciprocal and non-reciprocal taxes, lease and municipal taxes; CVR discussed changing plate numbers, changing and voiding a deal, user preferences and handled a host of operational questions. IADA touched on several operational and legal questions for participants.

The webinar was recorded and will be available on our website, www.illinoisdealers.com, in the near future.


  SOS Offers Some Procedural Guidelines When Submitting Manual Transactions  
  Thank goodness for our IADA-CVR process, our electronic procedures have not changed as we continue to process and deliver your transactions each day. Continue to send all your IADA-CVR applications directly to IADA. 

However, with SOS operating with an extremely streamlined staff, manual applications sent directly to SOS will continue to backlog and be processed at a slower rate. They are trying to make procedural changes to assist with speeding up their process. This is an SOS memo they are sending to all IL clients who process title & registration applications (Again, this does not affect our IADA-CVR process). 



  Illinois Legislature to Return to Springfield Next Week  
  The Illinois Legislature is set to return to Springfield for a special abbreviated session next week to discuss the state budget. We will be pushing to repeal the $10,000 trade in credit cap and have discussed with the leadership of both parties to work on repeal of this unfair law. Please remind your legislators to work for repeal! Click here to visit IADA's website for contacts and messaging to your legislators.   


  KPA Return to Work Safely Program  
  KPA is excited to announce its Return to Work Safely Program which provides dealers with an online toolset of assets, training and everything they'll need to help safely guide their return to normal operations, and ensure they stay compliant with stringent state and federal COVID-19 regulations. 

As part of KPA's commitment to our customers and to the dealer community at large, we have created an upcoming "Return to Work Safely Webinar Series," to prepare dealerships for the "new normal." All webinars are complimentary, click here for upcoming dates and times.

KPA's COVID-19: Coronavirus Resource Center which has additional articles, resource packets, live updates and more.