Full House Resorts secures $5.6 million in PPP loans for two casinos
Nevada-based casino developer and operator Full House Resorts Incorporated has confirmed that it has secured $5.6 million in Paycheck Protection Program (PPP) loans for two of its five entertainment properties.
The publicly traded casino developer and operator’s revelation regarding PPP loans for its two casinos surfaced through its documents that the company filed with the U.S. Securities & Exchange Commission (SEC).
The two Full House recipients of the PPP loans are the Rising Sun, Ind.-based Rising Star Casino Resort and Cripple Creek, Colo.-based Bronco Billy’s Casino. While Rising Star Casino Resort received a nearly $3.4 million loan, a $2.2 million loan went to Bronco Billy’s Casino.
Daniel Lee, chief executive officer of Full House resorts, said the secured loans will help the two casinos hire back their hundreds of workers. He explained that the company was the prime candidate for the program, and would use the loan to bring people back to work.
However, the announcement of the loans was not welcomed by everybody. Watchdog groups have started questioning publicly traded recipients of the loans. Some watchdog groups have criticized the PPP initiative saying that publicly traded companies are taking advantage of loopholes to secure funding that was meant for small businesses.
Derek Martin, a spokesman for the watchdog group, said, “Workers at small businesses are struggling to pay rent and put food on the table during this crisis and they need help. Instead, the Trump administration continues to throw money at public companies that have other means to weather this storm.”
Nevertheless, lawmakers and many experts view the PPP initiative as the only way to survive for small businesses or casinos that rely on gaming revenues for income. For instance gaming is the main source of income for a number of rural taverns. More than five hundred publicly traded businesses have received PPP loans worth nearly $1.5 billion.
The federal government’s PPP initiative, which has been created through the CARES Act, aims to assist small businesses by enabling them to keep workers on payrolls amid the notorious COVID-19 crisis that forced a number of businesses to either shut down fully or trim down their operations. Eligible businesses can qualify for up to ten weeks of payroll, with maximum amount capped at $10 million. The loans are also forgivable if at least 75 per cent of the principal is used for payroll purposes.