By: Jay E. Ingle and Christopher F. Hoskins
The latest COVID-19 stimulus package smoothed the way to accessing programs in the CARES Act in three ways that impact the horse industry: (1) additional funding has been made available for the Paycheck Protection Program loans, which remains available to horse farms eligible for the program; (2) horse farms with 500 or fewer employees are now eligible for the Economic Injury Disaster Loan program; and (3) racetracks that had previously been excluded from the PPP are now eligible.
Loans for Horse Farms – More funding for PPP loans and New Eligibility for EIDL Loans
On April 24, 2020, the latest relief package replenished the PPP with $310 billion for loans and added $60 billion in loans and grants for the EIDL program. Horse farms with 500 or fewer employees remain eligible for PPP loans. Reapply immediately for the new funding if you did not get your application in before funding ran out on April 16. Projections have the additional funds going quickly, so farms interested in PPP loans should act now.
Horse farms with 500 or fewer employees are now eligible for EIDL emergency grants and loans. Previously, farms were not eligible for EIDL relief, but have been included in the latest legislation. Farms must still satisfy EIDL’s requirements to be eligible for relief.
Racetracks Now Eligible for PPP Loans
Also on April 24, 2020, the SBA issued a final rule making clear that racetracks and casinos with 500 or fewer employees are eligible for PPP loans. The final rule states that a business that “otherwise eligible for a PPP Loan is not rendered ineligible due to its receipt of legal gaming revenue.” The SBA reasoned that this “approach is more consistent with the policy aim of making PPP loans available to a broad segment of U.S. businesses.” Racetracks must still satisfy certain PPP loan requirements to be eligible for a loan under the PPP. A link to the final rule can be found here.
Additional information about the PPP and EIDL loan programs, as well as other relief, can be found in this guidance from Jackson Kelly attorney Bob Tweel:
Congress Passes COVID-19 Relief Package – WHAT YOUR BUSINESS NEEDS TO KNOW (March 27, 2020)
Late Breaking Updates About the CARES Act Paycheck Protection Program (April 3, 2020)
Payment Protection Program (PPP) Update (April 14, 2020)
PPP New Funding (April 21, 2020)