PAYCHECK PROTECTION PROGRAM (PPP)
The Senate has approved funding for a new $ 320 billion Paycheck Protection Program (PPP). Will small game companies get anything? The US Senate took the first step on Tuesday to expand the COVID-19 assistance program for small businesses, approving a spending package of nearly half a trillion dollars. This includes over $ 320 billion in Paycheck Protection.
Voting took place on the same day that leaders of the Republican and Democratic congresses reached an agreement on a fourth aid package related to the coronavirus pandemic. While most lawmakers are quarantined in their hometowns or states, a small number of senators have approved $ 484 billion in bill assistance.
Subject to approval, this measure will almost double the amount of congressional funding for PPP. The initial $ 349 billion was spent last week after lawmakers approved this round of funding late last month.
Ultimately, the rules were relaxed last week. However, the new rules still do not allow assistance to companies that earned more than $ 1 million in games in 2019 and companies that receive more than 50 percent of their gaming revenue.
The new rules also allow bars and taverns, whose income depends on slot machines, to apply for a loan. But it remains unknown how many of them, even so, were able to get it, since funding had run out just a couple of days later.
PPP loans are designed to help small businesses with up to 500 employees receive funding equivalent to a 10-week salary. It is possible to apply for a loan if at least 75% of its amount is used to pay salaries, and the balance is already for other expenses, such as rent or mortgage payments, payment of benefits, utilities.
According to the American Bankers Association, 1.7 million small businesses have already received approval for a PPP loan, with an average loan amount of $ 206,000.
As for the new funding, which will be approved later this week, the question arises: how much will it be enough? The first $ 349 billion was issued in less than two weeks. Banking officials believe that the new round will be even faster, which means that companies that have not yet submitted an application will need to submit it as soon as possible.
Richard Hunt, president and chief executive officer of the Bankers Association, tweeted over the weekend that $ 1 trillion would be needed to cover all funding requests.
In an interview with Politico, Hunt suggested that new funds will be used up very quickly.