Small businesses get second chance at Federal loans during pandemic

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The Trump administration also issued guidance Thursday that it's unlikely a public company with substantial market value and access to capital markets would qualify for a PPP loan - and that companies have until May 7 to return their loans without penalty.

On 24 April President Donald Trump signed a new coronavirus financial relief package worth $484 billion, in a measure that passed Congress nearly unanimously on Thursday.

The Small Business Administration also tightened the rules of the Paycheck Protection Program, announcing it would forgive low-interest loans if at least 75 per cent of the funds are channeled into maintaining payroll.

CNBC reports that many small business owners were unable to receive any financial assistance, because although the program had a $10 million loan limit, if large hotel and restaurant businesses had less than 500 employees at each location, they were able to apply through multiple subsidiaries.

The original act, which was passed and signed into law on March 27, provided for more than $2 trillion in funding for small businesses, unemployment compensation, and larger distressed business assistance. Bowing to public pressure, other companies announced they meant to return their loan. "We are glad to see that our calls for reform were answered and this much-needed step is being taken to provide gaming small businesses in Nevada and across the country access to financial support and aid during this hard time", they said.

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Since then, it's emerged that dozens of publicly traded companies, some with valuations over $100 million, received funding, including $30 million from Ruth's Chris Steak House, Potbelly Sandwich Shop and the Wilhelmina International talent agency that represents celebrities from Nicki Minaj to Nick Jonas.

However, that program ran out of money within two weeks as it was overwhelmed by the number of businesses applying for relief. But a lobbyist-backed loophole allowed for restaurant chains to receive funds.

Miller said that the association and its allies have fought relentlessly to secure a new policy that replaces the "antiquated" guidelines SBA operated on when it first drafted the PPP relief scheme earlier this month. A combined total of $59 million from the small business lending package went to three lodging companies chaired by Bennett, according to regulatory filings.

The SBA will take applications in one bulk submission with a minimum of 15,000 loans, the memo said.

Meanwhile, the American Gaming Association has emerged as the leading national trade group that represents a whopping $261 billion USA casino industry that extends support to approximately 1.8 million jobs all across the country.

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