Small and medium-sized gaming businesses affected by the coronavirus pandemic are now eligible for loans under the Federal Reserve’s $600 billion Main Street Lending Program, the central bank announced.
The Fed on Thursday said it has expanded the scope and eligibility for the lending program, which was authorized in the $2.2 trillion CARES Act, and is part of the Fed’s broad effort to stabilize the economy.
Gaming businesses were included for eligibility by virtue of the central bank adopting the latest guidance issued by the Small Business Administration’s Paycheck Protect Program (PPP).
The PPP guidance, released last week, allows gaming businesses to participate in the PPP. The state’s congressional delegation had fought to allow small gaming businesses to access PPP loans after initially being ruled ineligible by SBA rules.
Under the program, eligible businesses must have been in operation as of March 13, have 15,000 employees or fewer and made $5 billion or less in revenue in 2019. That’s a change from up to 10,000 employees and $2.5 billion in revenue when the program was initially launched.
The loans are not forgivable, unlike the PPP, which is can forgive loans when funds are used for certain expenses, including payroll.
Loans issued under the program would have a four-year maturity, and principal and interest payments on the loans will be deferred for one year.
Disclosure: The Nevada Independent was approved for a PPP loan.