Start of the 137th Preakness at Pimlico.
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Thoroughbred Horsemen’s Assoc. and NTRA Announce Industry Eligibility for Loans and PPP
President Trump signed an emergency aid package providing additional relief to small businesses and health care facilities into law Friday and the Small Business Administration (SBA) released updated guidance that will assist the horse industry.
The new law provides $310 billion to replenish the Paycheck Protection Program (PPP) for small businesses, which was oversubscribed. The additional appropriation will allow financial institutions to make additional forgivable loans to eligible small businesses in order to keep employees on the payroll for eight weeks.
The new law also includes $60 billion in loans and grants for a separate Economic Injury Disaster Loan (EIDL) program and makes farms and ranches eligible for the loans. Farms with 500 or fewer employees whose primary activity is breeding horses are now eligible to apply.
Separately, the Treasury and SBA released updated interim final rules that contain a key clarification that will provide essential relief to racetracks and other businesses who rely on gambling income and otherwise qualify for an SBA loan. Under the new rules, businesses that receive legal gambling income are eligible to apply for this loan forgiveness program.
“We thank the SBA and our allies on the Hill for providing clarification that will allow broader participation in the PPP and EIDL loan programs by racetracks, farms and others in our industry who have been negatively impacted by the coronavirus pandemic,” said NTRA President and CEO Alex Waldrop.
NTRA partner Dean Dorton has posted an update on its Covid-19 microsite at NTRA.com that outlines all of these new provisions that will positively impact horse racing and breeding. That PowerPoint can be found here.
The SBA new guidance for racetracks and small entities such as horse ownership entities eligible for loans under the Paycheck Protection Loan Program (PPP) 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.”
This 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.
Obtaining clarification for the industry was a joint effort by NTRA and THA representatives on Capitol Hill. Organizations working together with officials to keep horses and horsemen going during these difficult times.
For more information contact: Alan M. Foreman, Chairman/CEO, Thoroughbred Horsemen’s Association, alan@tharacing.com
Edited Release
