American Gaming Association President and CEO Bill Miller said, ever since CARES Act has been enacted to offer economic assistance to minimize the impact of coronavirus, the American Gaming Association and their partners left no stone unturned to modify the Small Business Administration's obsolete policy that prohibited gaming companies from qualifying for loans via the Paycheck Protection Program. It provides $310 billion in additional funding for PPP ($250 billion) and emergency small-business grants ($60 billion).
Although the Senate approved the bill on Tuesday by unanimous consent during a pro forma session that negated the need for senators to return to Washington, getting the House's stamp approval required a further two-day wait while members returned to Washington to vote in person during a lengthy process meant to ensure proper social distancing in accordance with Centers for Disease Control guidelines.
The Trump administration does not believe that Congress intended those types of businesses, which are generally ineligible for SBA loans under existing regulations, to qualify, according to the guidance.
Still, those businesses are publicly traded-giving them a large well of outside capital to sustain operations. Concern that hedge funds might tap the PPP program amid the coronavirus crisis has triggered a backlash on Capitol Hill and around the country. The company, which had $17 billion under management as of March 31, said on Thursday it had "immediately rescinded" its already approved applications for $6.7 million in PPP loans for two subsidiaries following the new SBA guidance. The SBA could begin taking these applications as early as Monday, Fox News has learned. Accounting firms also reached out to funds to provide similar advice.
When asked after the release of the Treasury's new guidance whether Quantum will return funds from the PPP, the spokesperson referred CRN to the company's original statement about why it took out the loan.
Hedge funds are created to employ as few people as possible so star traders don't have to share the millions of dollars in fees they make off of their best market bets and for managing clients' money.
Quantum is considered a small business according the North American Industry Classification System, or NAICS, under NAICS code 334112 for Computer Storage Device Manufacturing Industry companies with up to 1,250 employees, the spokesperson said. This includes automating the requests, collecting required documentation, end-to-end processing, and communication and forgiveness of the loan. The initial funding of $349 billion was exhausted on April 16.