GNYADA December Newsletter

Federal DOJ Investigating Auto Dealer PPP Loans 02

NADA Director’s Column Robert Vail, NADA Secretary 04

that could help the government bring claims against the borrower under the FCA. The DOJ may initiate its own investigation or open an investigation after an individual files a qui tam action. A qui tam action is a lawsuit filed by a private citizen on behalf of the United States government. This type of lawsuit is expressly permitted under the FCA, and private citizens are incentivized to bring such claims because they are entitled to receive a percentage of the government’s ultimate recovery. With monetary incentives for private actions, and a wealth of publicly accessible information relating to PPP loans, government investigations into PPP loan recipients are continuing. If any dealer receives a civil investigative demand letter or any other communication from the DOJ relating to PPP loans, we strongly advise that they immediately contact their dealer lawyer for assistance. For questions related to this Alert, please contact Shawn Mercer, Esq. (smercer@bsm-law.com) at 919-847-8632 or Richard Sox, Esq. (rsox@bsm-law. com) at 850-878-6404. This communication is intended for educational purposes only and is expressly not intended to provide legal advice.

During COVID many dealers applied for and received PPP loans, as well as forgiveness for those loans, under the CARES Act. Yet, the United States Department of Justice (“DOJ”) and Small Business Administration (“SBA”) are actively investigating entities that the government now believes did not qualify for those loans. One of the primary tools utilized by the government in pursuing investigations relating to PPP loans is the False Claims Act (“FCA”). Generally speaking, the FCA prohibits any person from knowingly submitting, or causing to be submitted, false claims to the government. This is relevant because PPP loan and forgiveness applications required the borrower to make certain affirmative representations, including certifying that they were qualified for the loans under the rules existing at the time of the application. The DOJ is actively investigating instances where businesses certified their qualification for these loans, but available information indicates the entities did not qualify under the applicable rules. These investigations often commence with civil investigative demand letters, which generally seek information about the loans. The government may request information relating to applications, entities that received loans, how money was spent, or any other information

The automotive industry is heading into 2026 with several major developments from the IRS and NADA that impact dealership operations, EV training, and upcoming industry events. IRS Portal Issues Disrupt Clean Vehicle

in partnership with the ASE Education Foundation, the program gives dealerships a flexible, step-by-step model to create and run their own in-store training programs. Full program details will be unveiled at the NADA Show in February. For early inquiries or participation info, contact Megan Dolan at mdolan@nada.org. Mark Your Calendar: 2026 Automotive Forum The next Automotive Forum New York is set for March 31, 2026. This high-profile event brings together top industry voices to discuss the key trends, forecasts, and challenges facing the automotive sector. Expect expert insights, economic outlooks, and valuable networking opportunities. Registration details coming soon. 2026 NADA Show The 2026 NADA Show will take place Tuesday through Friday, February 3–6, 2026 in Las Vegas, with the Expo running February 4–6 . The event will debut a new Tuesday–Friday format, designed to simplify travel and minimize weekend conflicts, and an expanded Expo in the North Hall featuring over 600 exhibitors showcasing the latest solutions in dealership operations, technology, and digital retailing. Dealers can expect cutting-edge insights, fast-paced product demos, and in-depth Super Sessions on emerging topics such as AI and the future of vehicle sales.

Credit Reporting The IRS has reported

ongoing technical problems with the Energy Credits Online portal, affecting clean vehicle credit submissions. While vehicles purchased after September 30 no longer qualify for the credit, the portal remains open for registered users to submit and update time of sale reports. Unfortunately, dealers are now encountering issues accessing the portal to track pending submissions. The IRS is aware and working on a fix. NADA continues to stay in close contact with Treasury and IRS officials to push for resolution and will keep dealers and ATAEs updated as more information becomes available. New EV Tech Apprenticeship Program Approved NADA has secured approval from the U.S. Department of Labor for a new registered apprenticeship program focused on electric vehicle service technicians. Developed

GNYADA Recognized as a Top Trade Association 03

City & State magazine has named GNYADA one of New York’s Top Trade Associations, an honor that places the automotive retail industry alongside the state’s most influential sectors. The new annual ranking highlights associations driving policy, supporting economic growth, and shaping the future of their industries. This recognition highlights GNYADA’s ongoing commitment to advocacy, education, and industry leadership for its dealer members and allied partners. City & State noted that trade associations are essential drivers of New York’s economic landscape, and GNYADA earned its place on the list for championing the interests of auto retailers while fostering job growth, encouraging innovation, and strengthening consumer protections. Being included in City & State’s inaugural “Top Trade Associations” list is a significant milestone for the Association and a testament to the unified efforts of the Board, staff, and membership. Click here to read the full article.