SBA Approves Long-Awaited Changes By AGA

The novel COVID-19 outbreak has impacted all of us, every single life all across the world. This is, not something that we can stand against, but we can prevent. Despite this, it has already ruined multiple small businesses and even impacted huge industries such as gambling.

The US is one of the countries who have suffered a lot. It tops the chart of the COVID-19 infected all across the world. Almost one million people are infected with the novel coronavirus in the USA and it should not be surprising that the country has introduced several restrictions, in order to prevent further spread.

The restrictions include the closure of the casinos, which was one of the biggest hits for the economy. Las Vegas, for example, known as the City of Lights, has gone dark and is waiting for someone to save it from the dark. Many other casinos have suffered a lot. There is the chance that some of them might not even recover, thus they are asking for help from the American Gaming Association (AGA).

Wave of Changes

Small Business Administration (SBA) has introduced an amendment, which focuses on the small gambling business to weather the COVID-19 lockdown and receive federal funding for the relief period. This has not been an easy way out. The weeks of the hard pressure and debates prior to the amendment was the toughest. The SBA agreed to review the Paycheck Protection Program (PPP) only by the end of the last week. The program had gone through several tweaks, mostly because of casinos and other gambling businesses protesting against the nature of the relief financial package, which precluded companies with at least one-third of their revenue owing to gambling.

The program is set up under the $2.2 trillion Cares Act. The act was specifically created to protect the country’s economy during the very trying times of the massive lockdown due to the COVID-19 outbreak. Prior to this amendment, which was agreed on the 24th of April, SBA had made two more. The criteria have been changed in order to increase the coverage of people in need.

The AGA took a big part in the amendments and accepting them. They were the ones to protest against the original document and even further amendments. AGA sent a letter to the US President Donald Trump regarding the request to once again review the criteria. So far the whole organization seems happy regarding the amendment s and the funding the small gambling companies should receive.

Originally, SBA precluded businesses that generated one-third of their revenue from gambling, but then changed its stance to disqualify SMEs that failed to generate $1 million in total revenue and less than 50% of that revenue came from gambling.

Bill Miller, the CEO of the American Gambling Association commented on the amendment made by SBA. He mentioned in the press release that the association is very pleased with the decision and for the new regulatory guidelines. He said that new guidelines will assist small companies to put smile on their faces and overcome the very critical situation. 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.