A business that is otherwise eligible for a Paycheck Protection Program (PPP) loan is not rendered ineligible due to its receipt of legal gaming revenues if the existing standard in 13 CFR 120.110(g) is met or the following of two conditions are satisfied:
- The business’s legal gaming revenue (net of payouts but not other expenses) did not exceed $1 million in 2019.
- Legal gaming revenue (net of payouts but not other expenses) comprised less that 50% of the business’s total revenue in 2019.
Businesses that received illegal gaming revenue are categorically ineligible. The Administrator, in consultation with the Secretary, believes this test appropriately balances the longstanding policy reasons for limiting lending to businesses primarily and substantially engaged in gaming activity with the policy aim of making the PPP Loan available to a broad segment of U.S. businesses and their employees.
For more answers to questions on issues surrounding the CARES Act and Paycheck Protection Program (PPP), see additional articles on our COVID-19 resources page here.