SBA Opens Door to Smaller Gaming Companies
The U.S. Small Business Administration (SBA) last week released revised regulatory guidelines that permit eligible small gaming entities to participate in the Paycheck Protection Program (PPP). The guidelines reverse previous ones that barred gaming companies from participating in the program.
It was good news for small U.S. casinos last Friday as the Trump administration revised guidelines to allow small casinos hit by the coronavirus to get small business loans.
The Small Business Administration (SBA) announced that size-eligible small gaming entities can participate in the Paycheck Protection Program (PPP). According to TheHill.com, in the initial package, businesses that received more than one-third of their gross annual revenue from legal gambling activities were ineligible for loans.
American Gaming Association President and CEO Bill Miller hailed the decision, saying in a statement: “In the nearly one month since the CARES Act was enacted to provide economic relief to blunt the impact of the COVID-19 pandemic, the American Gaming Association and our allies have fought tirelessly to correct the Small Business Administration’s antiquated policy that precluded gaming companies from qualifying for loans through the Paycheck Protection Program.
“We are pleased that the new regulatory guidelines released today make small gaming companies eligible for this critical program just as Congress has replenished its funding,” he said. “I’m grateful to President Trump and his administration for recognizing that commercial and tribal gaming industry employees deserve the same support available to other small businesses, and for the significant, sustained efforts of members of Congress to amplify the need for changes to the guidelines to get small gaming operators and their employees through this challenging time.”
The first $349 billion of the PPP was exhausted in less than two weeks. The program is due for a second infusion of funds in the amount of $310 billion.