Floor Plan Interest Ppp

Nada has asked for guidance.

Floor plan interest ppp. Whether other debt applies to floorplan interest on inventory acquired o n or after 2 15 20 is an unresolved question. Keep in mind that even if floor plan interest can be included in any forgiveness amount dealers are limited in how much they can allocate such interest or any non payroll expense for forgiveness. This is because the rules state that at least 75 of the total amount forgiven on any ppp loan must be for payroll expenses. Principal amount of the loan plus accrued interest.

What are the ppp loan time parameters. The proposal also would set aside 25 billion for entities with 10 or fewer workers as well as 10 billion for loans made by community lenders. Still waiting for clarification we have not seen any clarification on floor plan interest. If the dealership has a large amount of cash liquidity on deposit with their lender it can consider reducing the cash liquidity by paying down floor plan and taking some of these funds and placing them with another financial institution.

Other debt likely includes floor plan interest but not curtailment for inventory acquired before 2 15 20. Interest but only interest on any mortgage obligation. Sponsored group health plan but excluding any pre tax or after tax contributions by employees. Interest payments mortgage debts incurred before february 15 2020 shall not include prepayments at this time it s unclear whether other non mortgage interest on lines of credits working capital loans or certain inventory based loans like floor plan can be counted as eligible expenses for forgiveness.

We re still waiting for guidance on whether floor plan inventory acquired after february 15 is eligible. The argument to include it is that it s a mortgage of personal property. The plan would also let companies with up to 300 employees and at least a 50 drop in revenue get a second ppp loan of as much as 2 million. And interest but only interest on any other debt obligations incurred before 2 15 20 the cares act also states that ppp proceeds may be used for other purposes generally allowed under sba section 7 a programs.

However we are leaning more towards including it or at a minimum tracking it and waiting for more guidance before submitting your forgiveness request. Floor plan interest is likely included in other debt for floor plan inventory acquired before february 15 2020. Is there a restriction on the amount of allowable. Interest but only interest on any mortgage obligation.