￼Paycheck Protection Program:
Prior to leaving town for the July 4th holiday, the House and Senate passed a bill that allows the Small Business Administration (SBA) to continue issuing Paycheck Protection Program (PPP) loans until August 8th. The bill was signed into law by President Trump last week. Prior to the enactment of the bill, the PPP was set to stop issuing loans on June 30th. However, due to the ongoing COVID-19 pandemic and the fact that $130 billion allocated for the PPP remained unspent, Congress decided to allow the SBA to continue issuing loans. To apply for a PPP loan click here.
The Senate will be in recess until July 20th, which means a new COVID-19 relief bill will not be enacted until late July or early August. This means the Senate will only have three weeks to pass a bill prior to the August recess. The House of Representatives is still in session and will be working on appropriations bills.
If your business is still looking for COVID-19 relief click here for a list of state and local loans available to businesses. In addition, ARA’s website contains a spreadsheet containing COVID-19 Relief Resources for Small and Medium Businesses.
On July 1, the Consumer Access to Repair (CAR) Coalition formally launched. The coalition, whose members include LKQ Corp., Allstate, Certified Automotive Parts Association, and the Automotive Body Parts Association, has called on Congress to explore expanded consumer choice over personal vehicle data. The CAR Coalition urged members of Congress to oppose automakers’ call to impose a five-year federal preemption on any state taking action on the sharing of telematics data. By opposing automakers’ request, Congress would be supporting consumer choice and would allow consumers to have greater access to less expensive replacement vehicle parts.
According to data released by INRIX, vehicle traffic in the United States has rebounded to at least 90% of pre-pandemic levels. It is also possible that vehicle traffic will continue to increase to levels higher than before the pandemic due to people staying away from public transportation.
U.S. light vehicle sales declined by 33.8% in Q2 2020 from Q2 2019. However, used car sales have jumped to 17% above pre-pandemic forecasts in June. Observers have attributed the spike in used car sales on a shortage of new vehicle inventory, favorable interest rates, and the overall cost savings associated with buying a used vehicle.
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