Coronavirus and the Aftermarket – Business Resources

Yes, the Paycheck Protection Program will provide loans to small businesses (fewer than 500 employees) to cover employee wages, rent, and other essential expenses incurred between February 15th and June 30th, 2020. Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 1102 (2020). Eight weeks of these expenses may be forgiven. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 1108(2020). The SBA now also considers the coronavirus a "disaster" for the purposes of qualifying for Economic Injury Disaster Loans. (The Coronavirus Preparedness and Response Supplemental Appropriations Act, PL 116-123, § 2 (2020) ). Applicants will be given a $10,000 advance grant which will not need to be repaid. Please note that applicants cannot use multiple SBA loans to cover the same expenses for the same time period. For more information on these low-interest loans please visit (insert link). In addition, for mid-sized businesses (501-10,000) the Secretary of Treasury is authorized to establish a low interest loan program with an annualized interest rate capped at 2% and principal and interest deferment for at least six months. (The Coronavirus Preparedness and Response Supplemental Appropriations Act, PL 116-123, § 4003 (2020) )

Related link: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

The IRS will provide a tax credit for sick leave that was paid to employees as required by the Families First Coronavirus Response Act. However, there is a cap on the dollar value of that credit. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 7001 (2020)). The IRS will also provide a tax credit for Family Medical Leave Act leave that is paid as required by the Families First Coronavirus Response Act. There is also a cap on the dollar value of this credit. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 7003(2020)) Businesses may receive an advance of this tax credit as well. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 3606 (2020)

The focus of the Coronavirus Aid Relief and Economic Security Act (CARES Act) is on providing loans to small businesses (businesses with 500 or fewer employees). Those loans include the Payroll Protection Program and the Economic Injury Disaster Loans. CARES also provides loan options for mid-sized companies (501-10,000 employees). Here the Secretary of the Treasury is authorized to establish a loan program for these entities with interest rates capped at 2% per annum with the purpose of retaining 90% of its workforce. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 4003(2020))

The Department of Labor has created guidelines for compliance with the Families First Coronavirus Response Act.

Related link: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave

Businesses with fewer than 50 employees can petition the Secretary of Labor for an exemption to the FMLA requirements if they can show that compliance would jeopardize the viability of their business. (Families First Coronavirus Response Act, PL 116-127, § 3102 (2020)). These businesses may also petition the Secretary of Labor for an exemption of sick leave requirements under the Families First Coronavirus Response Act if they can show that compliance would jeopardize the viability of their business (Families First Coronavirus Response Act, PL 116-127, §5111 (2020))

Unemployment insurance coverage was extended to individuals who would not otherwise be eligible. This "Pandemic Unemployment Assistance" will cover self-employed persons, part-time workers and those with limited work histories. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 2102 (2020)). Through July 31st, these covered persons and traditional unemployment insurance beneficiaries will receive an extra $600 per week in unemployment compensation. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 2104 (2020)).Up to an additional 13 weeks of unemployment insurance coverage is also covered after an employee has exhausted their regular benefit. (Coronavirus Aid, Relief, and Economic Security Act, PL 116-136 § 2107 (2020)).

Related link: https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx

Current evidence suggests that SARS-CoV-2 may remain viable for hours to days on surfaces made from a variety of materials. When technicians are working on a customer’s vehicles, they should consider wearing gloves to avoid coming into direct contact with any vehicle surfaces and take the extra step of disinfecting vehicle surfaces with an approved disinfect from the CDC List N. Many of these chemicals might be too harsh for a vehicles interior trim such as bleach, hydrogen peroxide and ammonia. The CDC specifies that isopropyl alcohol can be used but it should be in concentrations of 70% or higher. Using isopropyl alcohol at this level of concentration could cause damage to leather or porous vinyl. You might want to take the extra step of contacting a detailing specialist to make sure that any disinfecting process you implement will not harm a vehicles interior trim. Some common vehicle surfaces that will need to be disinfected: Key/remote, Door handle(s, Liftgate or trunk release handle, Engine start button, Seat adjustment controls (and seat memory buttons), Rearview mirror, Side mirror controls, Whole steering wheel, buttons and tilt/telescope adjustment, Turn signal and wiper stalks, Seat belt buckle (receptacle and tongue), Shifter, Touchscreen, All dashboard controls, Any center console controls, Overhead controls, Grab handles, Armrests, center console latch, Glove box, vents, etc.

Related links: cdc.gov; cars.com; epa.gov; https://www.cars.com/articles/can-you-disinfect-a-car-against-the-coronavirus-419932/, https://www.epa.gov/pesticide-registration/list-n-disinfectants-use-against-sars-cov-2, https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/cleaning-disinfection.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fprepare%2Fcleaning-disinfection.html

(1) Companies should look at the OSHA Guidance on Preparing Workplaces for Covid-19 documentation . (2) They can also look at our downloadable poster on the "Operations Resources" tab for a helpful reminder that they can place in their workplace. (3) This article, while written for Heavy Duty has excellent takeaways for shops servicing all classes of motor vehicles.

The auto repair, retail and related businesses including suppliers, distributors and manufacturers have been identified as essential services by the Department of Homeland Security in guidance to the states. Ultimately the states through the Governor’s executive authority will make the final determination on what industries are considered essential service providers.

There is no concern that the essential business status may change. However, states may limit or restrict how essential service providers perform their functions during this pandemic such as limiting full-service operations, requiring curbside pickup, and/or mandating the number of employees and customers allowed inside a facility.

In some states, employers are advised to provide a letter to employees stating their essential status. The letter should include details on the essential business: the name of the employee, a phone number, name of the business, address of the business and a point of contact at the business for verification purposes.

Yes, technicians and other auto repair workers in the repair industry are considered essential, per the guidance from the Department of Homeland Security. However, each state will issue final regulations on what industries and workers are considered essential service providers. Please consult with your supervisor as to your status and/or the Governor’s executive order in your state. You can find your state’s executive order on the state tracker at autocare.org/coronavirus, navigate to the "On Your Behalf" tab and click the state tracker icon.

Employees who repair and maintain vehicles, and the equipment and infrastructure that enables those operations in the supply chain are considered essential service in the guidance to the states from the Department of Homeland Security. However, the Governor’s office will make final determination on what ancillary functions are deemed essential service. Please verify with your state what functions which are not subject to mandatory stay at home orders or other restrictions.

Each state has a department of emergency management or agency that is overseeing the guidance and implementation of executive orders. Please contact your state or the Auto Care staff to help you navigate these government sources to find out if your business is indeed essential.

The Department of Homeland Security guidance designates essential service as those functions critical to facilitating the continuity of operations for essential workforces and other essential travel. However, this is guidance to the states and final determination of essential service status is determined by the Governor. Consult your states executive order and guidance to determine what constitutes essential service.

Each state has different rules and regulations regarding who is classified as essential service providers. Please consult your state Governor’s office executive order to determine.

You can learn if your state has deemed auto repair an essential service by going to the "On Your Behalf" tab and click on the state tracker icon.

Yes, the Cybersecurity and Infrastructure Security Administration which is a division of the Department of Homeland Security has issued recommendations that repair shops and the companies that supply them be deemed essential. However, this is a state by state and even a jurisdiction by jurisdiction decision and CISA findings are only advisory in nature.

These orders are issued under the executive authority of each governor, however, each state has also designated essential businesses that can remain open even during the shelter in place orders. Please see your governor’s website for executive orders and guidance and/or contact the government affairs staff to help.

The state order always supersedes the local, municipal or tribal orders unless the state defers its authority to the local government. In that case you would adhere to the local laws but if the state changes course and issues guidance, then the state order has precedent. In short, state law always takes precedent over local laws unless the state defers to the municipalities.

If your business spans multiple locations or jurisdictions and workers must travel between those sites, you are required to review reach states executive order to determine the central nature of your business and/or other requirements such as: shelter in place, mandatory closings, or other information as determined by the governing authorities executive order. If you have questions, or if you need help, please contact the Auto Care government affairs staff.

The Government Affairs staff is working around the clock with state and local authorities to ensure that executive orders issued by the governors or local municipalities follow the guidelines by the Department of Homeland Security or are amended with language that exempts all businesses in the Auto Care supply chain. We are also monitoring federal legislation and working on Capitol Hill to determine what steps can be taken to protect the industry, member businesses and employees during this unprecedented global health crisis. We have updated resources on our web page (autocare.org/coronavirus), and staff is available to answer any of your inquiries either via email or phone. We are part of industry coalitions and we are hosting member communications to clarify and update relevant information that affects the Auto Care membership.

Initial social distancing guidelines decreased miles driven and traffic, but we still heard from some members that they were seeing traffic to service locations. Sales were down perhaps 20-30% (much more for manufacturers). However, stay at home orders are reducing miles driven dramatically with members starting to see sales decreases 70%.

Between closures of service businesses, stay at home orders, demand for parts and service is coming to a near halt at retailers and accelerating beyond 70% at service locations. Even though our businesses are still considered essential, consumers don't seem to find the need essential at the moment.

This varies company to company, and based on state and local guidance. However, we are seeing more sales and training teams pulled and if they are able, working remotely. Companies are moving to digital platforms for training purposes, and holding regular communications via webinar or conference calls. We have found that even though companies are listed and deemed "essential" they are taking precautions, and enforcing strict social distancing, or no-contact guidance.

U.S. lawmakers and the business community are requesting the administration and CBP to consider deferring duty payments to help preserve cash flow and continue supporting U.S. jobs.

A few members reported their containers from China are on the water and en route to a U.S. port. Capacity in China may slow down a bit due to lack of sub-components. From Europe, members are seeing 1-2 week delays bringing in containers - not massive slow downs, but slower. The bigger issue coming will be availability of parts as more and more plants are partially closed or completely closed.

If you are able to donate medical supplies, we recommend that you contact your state health department. Additionally, contact you local Congressman’s district office for ongoing efforts being done locally and how you can participate safely.