NIADA Lobbies for RFCs

By Staff Writer April 14, 2020 1146

Related finance companies are not being approved for loans under the Paycheck Protection Program and that’s a mistake, according to the National Independent Automobile Dealers Association.

NIADA, through its CEO Steve Jordan, made its case this week by sending letters to leaders of the U.S. Congress, the Small Business Administration and the Senate Small Business Committee.

“As NIADA members begin to apply for PPP loans, we find that the dealership entities are being approved with little concern. However, RFCs are routinely denied with lenders stating current SBA guidance prohibits finance companies from receiving a PPP loan,” Jordan wrote.

Citing the specific sections of the CARES Act, the NIADA contends that despite Congress’ “clear intent,” the act seems to limit and exclude RFCs from participating in the program.

Jordan wrote,  “NIADA believes this limitation clearly conflicts with the intent, if not the express language of the statute.”

NIADA provides proposed language to allow the RFCs to participate in PPP.

“This change will permit our BHPH (buy-here, pay-here members’) RFCs to get much needed help to keep America’s credit-challenged essential personnel driving,” he wrote.

Jordan also discussed the important role that RFCs and buy-here, pay-here dealers play in helping unbankable customers get financed for basic transportation.

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Last modified on Monday, 20 April 2020 13:59