Owings Mills, MD — The Thoroughbred Horsemen’s Association is pleased to announce that the Small Business Administration today has issued new guidance clarifying that racetracks and small entities such as horse ownership entities are eligible for loans under the Paycheck Protection Loan Program.
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.”
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.
We are grateful to the NTRA and THA representatives on Capitol Hill for getting this done.
To view a complete copy of the Interim Final Rule outlining clarifications, please see the following link:
In addition, NTRA partner Dean Dorton, one of the nation’s leading experts on equine tax matters, 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.