Some of America’s smallest gaming operators now qualify for the federal government’s pandemic bailout but the US casino lobby says the offer doesn’t go nearly far enough.
On Tuesday, the federal Small Business Administration (SBA) issued revised guidelines for the Paycheck Protection Program (PPP), which offers small businesses loans of up to $10m, which are forgivable if at least three-quarters of the cash is used to pay staff who would otherwise be affected by COVID-19 shutdowns.
Traditional SBA guidelines prohibit offering Economic Injury Disaster Loans to any business that derives “more than one-third of gross annual revenue from legal gambling activities.” The new guidelines allow a business to have up to one-half of its total revenue from gaming provided that gaming revenue didn’t exceed $1m in 2019.
The SBA believes the revised standard “appropriately balances the longstanding policy reasons for limiting lending to businesses primarily and substantially engaged in gaming activity with the policy aim of making the PPP Loan available to a broad segment of U.S. businesses and their employees.”