Friday, April 24, 2020 – Indian Country has received the good and long awaited news regarding some economic relief through the Small Business Administration (SBA) Paycheck Protection Program (PPP) to be inclusive of tribal casinos following the guidelines with employees 500 or less.
Just as new funds are being added to SBA PPP program, SBA just removed its previous preclusion of size-eligible legal gaming businesses. 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.
The H.R. 266 Paycheck Protection Program and Health Care Enhancement Act will increase funds with an additional $500 billion approved for COVID19 relief package that will deliver additional funding to small businesses and hospitals.
- $50 billion for the SBA Economic Injury Disaster Loan (EIDL) program, and $10 billion for SBA Emergency EIDL grants
- $322 billion for SBA Paycheck Protection Program (PPP)
- $60 billion for Community Financial Institutions, defined as minority depository institutions, certified development companies, microloan intermediaries, and Credit Unions.
- $30 billion for loans made by insured institutions, credit unions with assets between $10 billion and $30 billion
- $30 billion for CDFIs, small insured depository institutions, and credit unions with assets below $10 billion
Contact McCabe CPA Group LLC to assist with Application process and Best Accounting Practices During Disaster. We are prepared to assist tribes in addressing long-term and short-term challenges that may arise once the funding is secured, such as effects on financial planning models, audit, compliance and accountability structures.
These services we provide to tribes related to the stimulus funding:
- Identifying the funding options
- Work through the application process
- Develop accounting processes for proper the reporting, accountability and compliance
- Assist with audit related issues that are created from these new funds.
Contact us, and together we can respond to this crisis effectively and efficiently.
Sincerely,
Sean McCabe, CPA