Pub. 19 2020-2021 Issue 4

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 27 new jersey auto retailer W W W . N J C A R . O R G We have the road map. Arent Fox’s Automotive Group drives innovative strategies forward. Our cutting-edge, national practice advises automotive leaders as the industry faces a dizzying array of competitive and regulatory hurdles. Smart In Your World arentfox.com Take advantage of your NJCAR membership benefits • Knowledgable and local Account Manager • Over 150 years of energy experience • Tailored advice from market experts • Pricing programs that fit your needs • Outstanding Customer Care Member benefits: Call today for your free, no-obligation natural gas or power quote! Gail Caputi, Program Manager 609.760.2043 | gcaputi@njcar.org Peter Jagodzinski, Account Manager pjagodzinski@spragueenergy.com | 732.440.0038 Customized Natural Gas & Power Solutions Scan for more information Dealers that use the lenders’ portals to complete their forgiveness applications will answer a series of questions that will guide them to the proper form. Additionally, there are exceptions to the FTE reduction that may be applied: ◦ If the borrower makes a good-faith, written offer to rehire or restore the reduced hours of an employee during the Covered Period or the Alternative Payroll Covered Period, the offer was rejected, and the bor- rower has documentation of the offer and rejection and notified the State’s Unemployment Division; ◦ Employee was fired for cause; ◦ An employee voluntarily resigned; ◦ An employee requested and received a reduction of their hours; ◦ The borrower, in good faith, can document the inabil- ity to rehire individuals who were employees on Feb- ruary 15, 2020, and hire similarly qualified employees for unfilled positions on or before December 31, 2020, or the date of the application for forgiveness; Safe Harbor 1 is the most relevant of the safe harbors and reads as follows, “ If you were unable to operate between February 15, 2020, and the end of the Covered Period at the same level of business activi- ty as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020, and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of stan- dards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19 ”, you will not need to apply an FTE Reduction Quotient to your qualified costs. It may be difficult for dealerships to qualify for this safe harbor. Safe Harbor 2 allows the Borrower that had a reduction in FTE employee levels between February 15 and April 26, 2020, the ability to restore its FTE employee levels by no later than December 31, 2020, or the date of the forgiveness application to FTE levels in the pay period that included February 15. The PPP loan forgiveness application process is complex and ever-changing. It is important that dealers are communicating with their lenders, CPAs and attorneys to assist them through the process. Wilfredo Fernandez is a CPA and Partner at Citrin Cooperman & Company, LLP. Giuseppe Bueti is a Director at the same organization. They can be reached at 973.218.0500 or via email at wfernandez@citrincooperma.com and gbueti@citrincooperman.com , respectively.