Yes, a recent SBA interim final rule provides that a business that receives legal gaming revenue is eligible for a PPP loan if all other PPP eligibility criteria are met.

The recent SBA interim final rule states that “[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.” However, businesses that receive illegal gaming revenue “remain categorically ineligible.”

This interim final rule amends an SBA interim final rule published on April 20, 2020, which referenced the existing SBA revenue threshold for businesses with legal gaming revenue (in 13 CFR 120.110(g)) and established a new revenue threshold for smaller businesses with legal gaming revenue applying for PPP loans. Under the new interim final rule, these revenue thresholds no longer are applicable to PPP loan applicants.

For resources related to our guidance, please see:

• SBA Interim Final Rule, Paycheck Protection Program – Requirements – Promissory Notes, Authorizations, Affiliation, and Eligibility (April 24, 2020) (“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.”)

• SBA Regulations, 13 CFR 120.110(g) (“What businesses are ineligible for SBA business loans? The following types of businesses are ineligible: . . . Businesses deriving more than one-third of gross annual revenue from legal gambling activities; . . .”)

• SBA Interim Final Rule, Paycheck Protection Program – Additional Eligibility Criteria and Requirements for Certain Pledges of Loans, 85 Fed. Reg. 21747, 21751 (April 20, 2020) (“A business that is otherwise eligible for a 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 two conditions are satisfied: (a) the business’s legal gaming revenue (net of payouts but not other expenses) did not exceed $1 million in 2019; and (b) legal gaming revenue (net of payouts but not other expenses) comprised less than 50 percent 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.”)