Racetracks and horse owners now eligible for Paycheck Protection Loan Program – Horse Racing News
President Trump today promulgated an Emergency Aid Program providing additional relief to small businesses and healthcare facilities, and the Small Business Administration released updated guidelines that will help the equestrian industry.
The new law provides $ 310 billion to replenish the paycheck protection program (P3) for small businesses, which has been oversubscribed. The additional credit will allow financial institutions to provide additional forgivable loans to qualifying small businesses to keep employees on the payroll for eight weeks.
The new law also includes $ 60 billion in loans and grants for a separate Economic Disaster Lending (EIDL) program and makes farms and ranches eligible for loans. Farms with 500 or fewer employees primarily engaged in horse breeding are now eligible.
Separately, the Treasury and the SBA have released updated Interim Final Rules that contain key clarification that will provide essential relief to racetracks and other businesses that depend on gaming revenue and otherwise qualify for an SBA loan. Under the new rules, businesses that earn legal gambling income are eligible for this loan waiver program.
The NTRA has been lobbying the SBA for this update of the guidelines for several weeks.
“We thank the SBA and our allies on the Hill for providing clarification that will allow for greater participation in PPP and EIDL loan programs by racetracks, farms and others in our industry that have been negatively impacted by the pandemic. coronavirus, ”NTRA Chairman and CEO Alex Waldrop said.
NTRA partner Dean Dorton, one of the leading national experts in equine tax matters, posted an update on his Covid-19 microsite on NTRA.com which outlines all of these new provisions that will have a positive impact on horse racing and breeding. This PowerPoint can be found here.
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