JUNE 3, 2009

IN THIS ISSUE

DEALER NEWS & INFORMATION

– NEXT WEEK! Dedication of the "Bud Wells Board Room"

– Automotive News at a Glance

REGULATORY & LEGAL UPDATES

– Federal Warn Act May Require Advance Notice of Major Layoff or Closing
– SBA Includes Dealer Floorplan Loans in 7(a) Programs as of July 1, 2009

LEGISLATIVE UPDATE

– 2009 Legislative Re-Cap Available at Coloradodealers.org!

ENDORSED VENDORS

– Protecting Service Technicians

ALLIED MEMBERS

– Look at Lincoln First

UPCOMING SEMINARS

– Upcoming Seminars

– Employment Law WEBINAR

– Controllers: Taxation Issues and DMS Cost-Reduction

– CADA Virtual Seminar: Manufacturer Bankruptcy: What it Means and Proactive Steps- Now Available in Pre:Recorded Format!

– CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy; Archive Now Available

CALENDAR OF EVENTS
– Upcoming Events

– Dedication of the "Bud Wells Board Room"

– Dealer Management and Leadership Summit

– CADA Annual Member Golf Event

DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

–Lisa Schomp, Finalist for Brian Vogt Community Leader of the Year Award
–Betty Van Vleet "Bets" O'Meara Passes Away

–Share Your Accomplishments

THE AFTERFACT

–All the News That's Fit to Email!

ARCHIVES

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e-newsletter archives.

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& Legal Articles from the Open
Road e-newsletter.

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CLICK HERE for Colorado Auto
Outlook archives.

CLICK HERE for Denver Auto
Outlook archives.

ONLINE REGISTRATION

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for various CADA seminars & events.

MEMBERSHIP RESOURCES

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Speaker and Educational
Resources.

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Endorsed Vendors/Programs.

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Allied Members.

CLICK HERE for an order form for
CADA forms.

CLICK HERE for information on all member services.

www.nada.org

CLICK HERE for NADA
Regulatory Affairs information.

STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment website.

Visit us at www.coloradodealers.org.

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Friday, 7 a.m. to 4 p.m.

CADA STAFF

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lauren.stadler@coloradodealers.org

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ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Vendors/Programs.

If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.

NEXT WEEK! DEDICATION OF THE "BUD WELLS BOARD ROOM"

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AUTOMOTIVE NEWS AT A GLANCE

Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.

FEDERAL WARN ACT MAY REQUIRE ADVANCE NOTICE OF MAJOR LAYOFF OR CLOSING

NADA Regulatory Affairs Committee Alert, June 2, 2009

Dealers whose franchise agreements are being cancelled, those who are closing their facilities, or those who are downsizing need to be reminded of a federal law that requires them to provide advance notice to employees. The Worker Adjustment and Retraining Notification (WARN) Act generally requires 60 calendar days’ notice when there is to be a mass layoff or closing.

Please click here for more information about the WARN Act as well as links to the U.S. Department of Labor Web site sections concerning the law.

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SBA INCLUDES DEALER FLOORPLAN LOANS IN 7(a) PROGRAMS AS OF JULY 1, 2009

"We worked closely with the SBA for months on this issue. This is the right thing for the SBA to do. It will double the number of dealers eligible for the SBA loan guarantee program."
    -- NADA Chairman John McEleney, referring to the new government-backed SBA pilot program that allows dealer floorplan loans, NADA Newswire, May 29

After expanding eligibility for its 7(a) loan guarantee program in early May, the Small Business Administration announced last week on May 28 that it is launching a pilot program that will — for the first time — provide eligible dealers with government-backed lines of credit to finance their vehicle inventory.
    
NADA has been working closely with the Obama administration, including SBA, Treasury and the Federal Reserve, in an effort to thaw dysfunctional credit markets for retail auto dealers.  Expanding  the 7(a) loan guarantee program to include floorplan loans is critical as many auto dealers are struggling to survive without access to credit.

The pilot program begins July 1, 2009, and runs through September 30, 2010. At that time, SBA will consider extending it. The pilot program will provide a guarantee of up to 75 percent for as much as a $2 million loan for floorplan financing. Many smaller dealers are expected to work with lenders to take advantage of this for their new- and used-vehicle inventory.

NADA continues to work with the Treasury, the Federal Reserve Board and the New York Fed to ensure that TALF funds may be extended to investors who wish to purchase floorplan asset-backed securities.

Key eligibility requirements:

On May 1, SBA temporarily expanded eligibility for its 7(a) loan guarantee program. Businesses will now be able to qualify for loan guarantees based on net worth and average income. The net worth for the company and its affiliates can’t be in excess of $8.5 million, and average net income after federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years can’t be more than $3 million. This change is in effect through September 30, 2010.  See http://www.nada.org/SBALoan.htm

Below are links to material with more information on this program:

• SBA Will Offer Floor Plan Financing to Auto, RV, Other Dealerships Beginning July 1, Press Release, May 28, 2009, SBA
• Dealer Floor Plan Financing Overview, SBA, (one-page overview)
• Dealer Floor Plan Financing:  Frequently Asked Questions for Borrowers and Lenders (3 pages)
  

Additional advice and information for dealers:

1. Dealerships should contact lenders it already does business with.  Local and regional banks and credit unions often do 7(a) loans.  The dealership should have its principal lender ask for their SBA loan expert (if any) and, if seeking floor plan assistance, request their floor plan expert (if any).  
2. Dealerships should contact the 7(a) loan expert at the SBA district office in your state.  These SBA employees often have first-hand knowledge of which lenders are actually making 7(a) guaranteed loans in the state.  See: http://www.sba.gov/localresources/index.html 
3. Go to the SBA 7(a) preferred lender list but realize that it is no panacea.  See: http://www.sba.gov/services/financialassistance/7alenderprograms/index.html
4. Whether any particular lender presently is in the game is largely a function of its capital liquidity, its cost-of-funds, and its risk tolerance.  Even with little back end risk, lenders need to have the dollars available to lend at a decent profit. 

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If you have questions on any legal or regulatory topic, please contact:

• Tammi McCoy, Vice Pres., tammi.mccoy@coloradodealers.org, 303.282.1449
• Tim Jackson, President, tim.jackson@coloradodealers.org, 303.282.1448

DISCLAIMER: CADA is not authorized to dispense legal advice.
The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance

2009 LEGISLATIVE RE-CAP AVAILABLE AT COLORADODEALERS.ORG!
By Melissa Kuipers, Vice President of Government Relations & Communications

CLICK HERE to access the the Colorado Automobile Dealers Association 2009 Legislative Re-Cap!

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Questions or Comments?  Please contact:

Melissa Kuipers – VP of Government Relations and Communications

melissa.kuipers@coloradodealers.org, 303.457.5115

ENDORSED VENDORS

PROTECTING SERVICE TECHNICIANS
THE BASICS OF HYBRID SAFETY FOR THE SERVICE MANAGER
First in a 3-Part Series By Peter Zaidel, Product Manager with KPA

As the service manager, you are responsible for creating a safe work environment for the service technicians. Hybrid Electric Vehicles (HEVs) bring a set of new safety considerations and regulatory requirements. This article summarizes the basics of hybrid safety.

CLICK HERE for the full article.

ALLIED MEMBERS

LOOK AT LINCOLN FIRST

Are you in need of a lot tech, lube tech, apprentice tech, or any other entry-level position?  If so, Lincoln College of Technology would like you to “Look to Lincoln First” when it comes to hiring entry-level employees for your business.  As an allied member of the Colorado Automobile Dealers Association, we at Lincoln College of Technology know the difficulties our local dealers face in today’s tough economy, therefore we have created a program designed to help with cost savings.

Click Here to read more

Click Here for a career fair schedule

Click Here for a new job order form

EMPLOYMENT LAW WEBINAR

Reducing Lawsuit Risks of Terminations and Staff Reductions

CLICK HERE for more information!

CLICK HERE to register online!

Thursday, June 18th
1:30 - 2:30 pm (may go to 3pm with Q&A)

Speaker: Todd Fredrickson
Top Denver employment attorney, Fisher & Phillips, LLP

Don't miss this upcoming online seminar!

The EEOC’s 2008 report shows a 15.2% increase over 2007 in charges against private employers, and the highest numbers to date.  In times of high unemployment, charges of discrimination tend to rise.

Many dealerships have been forced to downsize operations and/or may be contemplating further reductions. This session will show how to minimize the risk of claims and lawsuits stemming from terminations and reductions in force (“RIFs”) along with practical guidance to end employment relationships as amicably as possible.  Highlights include:

• Avoidance of discrimination claims, layoff notification laws, laws covering severance agreements and when to use them, and various end-of-employment issues such as final pay, COBRA, and unemployment compensation.
  • Including the implications of recent and significant changes to the Americans with Disabilities Act (ADA) and the Family Medical Leave Act (FMLA)
• Retaining essential talent as part of the RIF analysis, supporting those employees who are in transition, and effectively communicating with employees regarding terminations and workforce reductions
• Checklists and plans to conduct proper and defensible terminations and RIFs

CLICK HERE for more information on this training session.

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TO REGISTER ONLINE FOR ANY CADA SEMINAR OR EVENT, PLEASE VISIT: www.coloradodealers.org/registration

LISA SCHOMP, FINALIST FOR BRIAN VOGT COMMUNITY LEADER OF THE YEAR AWARD

Lisa J. Schomp, Owner/President of Ralph Schomp Automotive, was one of three finalists for the Brian Vogt Community Leader of the Year Award, presented at the 24th Annual Small Business Leadership Awards hosted by the South Metro Denver Chamber of Commerce (SMDCC) on May 21st.   Held at the Comedy Works South, the festive event drew over 300 business leaders

An Awards selection committee narrowed the field down to Schomp; Dennis “Denny” O’Mally, recently retired CEO of Craig Hospital (34 years); and Joseph “Bud” Ahearn, Sr. Vice President of CH2M Hill, who ultimately won the award.

Named after Brian Vogt, former SMDCC president and current CEO of the Denver Botanic Gardens, this award shines a spotlight on business leaders in the South Metro Area. Achievement criteria include:  leadership and management ability, innovation, financial performance, prospects for sustained success, and community involvement.

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BETTY VAN VLEET "BETS" O'MEARA PASSES AWAY

Betty O'Meara, 88, of Denver, passed away May 25, 2009. She is survived by her son, Brian, and daughters, Sharon & Marilyn, their spouses, 12 grand-children and 6 great-grandchildren. Memorial Service, 1:00 PM, Thursday, May 28, Horan & McConaty, 1091 S. Colorado Blvd. In lieu of flowers, please remember Bets by a donation to The Denver Museum of Miniatures Dolls & Toys, 1880 Gaylord St., Denver, CO 80206.

CLICK HERE to sign the electronic guest book.

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LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!

Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.

THE AFTERFACT

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