COVID loan programs get more funding; owners, tracks eligible

Additional funding for the Paycheck Protection Program and Economic Injury Disaster Loan program is included in a $480 billion in coronavirus (COVID-19) financial relief passed by the U.S. Senate and House of Representative and signed by President Trump April 24.

The EIDL program and Paycheck Protection Program are part of the Coronavirus Aid, Relief and Economic Security (CARES) Act that passed Congress in March. The most recent legislation adds $60 billion to the EIDL program and another $310 billion for the PPP.

The Thoroughbred Horsemen's Association April 24 announced that the Small Business Administration issued new guidance clarifying that racetracks and small entities such as horse ownership entities are eligible for PPP loans.

The new guidance is as follows:

"d. Part III.2.b. of the Third PPP Interim Final Rule (85 FR 21747, 21751) is revised to read as follows:

Are businesses that receive revenue from legal gaming eligible for a PPP Loan? A business that is otherwise eligible for a PPP Loan is not rendered ineligible due to its receipt of legal gaming revenues, and 13 CFR 120.110(g) is inapplicable to PPP loans. Businesses that received illegal gaming revenue remain categorically ineligible. On further consideration, the Administrator, in consultation with the Secretary, believes this approach is more consistent with the policy aim of making PPP loans available to a broad segment of U.S. businesses."

The guidance makes clear that while the exclusion for entities that receive revenue from legal gambling activities does not apply, the entity must still satisfy the other loan requirements.

In addition, the EIDL program now includes a provision that allows agricultural businesses to participate in the funding. There had been concerns among many breeding operations seeking to apply for funds. The new language now deems as eligible “an agricultural enterprise (as defined by the Small Business Act) with not more than 500 employees.”

THA and National Thoroughbred Racing Association lobbyists on Capitol Hill were instrumental in the favorable changes to the COVID-19 relief loan programs.

The PPP application is available hereThe PPP application is available here.

More information on the COVID-19 loan programs is available here.

 

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