New U.S. Aid Package Provides Loans to Farms

A new federal emergency aid package signed into law by President Donald Trump on April 24 includes $60 billion in loans and grants for a separate Economic Injury Disaster Loan program and makes farms and ranches eligible for the loans, according to the National Thoroughbred Racing Association.

Farms with 500 or fewer employees whose primary activity is breeding horses are now eligible to apply.

The new aid package provides additional relief to small businesses and health care facilities, and the Small Business Administration released updated guidance that will assist the horse industry. The Paycheck Protection Program, which was oversubscribed, will be replenished with $310 billion. The additional appropriation will allow financial institutions to make additional forgivable loans to eligible small businesses in order to keep employees on the payroll for eight weeks.

Separately, the U.S. Treasury and SBA released updated interim final rules that contain a key clarification that will provide essential relief to racetracks and other businesses who rely on gambling income and otherwise qualify for an SBA loan. Under the new rules, businesses that receive legal gambling income are eligible to apply for this loan forgiveness program.

The NTRA has been lobbying the SBA for this updated guidance for several weeks.

"We thank the SBA and our allies on the Hill for providing clarification that will allow broader participation in the PPP and EIDL loan programs by racetracks, farms, and others in our industry who have been negatively impacted by the coronavirus pandemic," NTRA president and CEO Alex Waldrop said.

NTRA partner Dean Dorton, one of the nation's leading experts on equine tax matters, has posted an update on its COVID-19 microsite at NTRA.com that outlines these new provisions that will positively affect horse racing and breeding.

Click here to download Dean Dorton's presentation on how the federal stimulus programs affect horse racing and breeding operations.