However, in a call with investment analysts Wednesday, Full House President and CEO Daniel Lee touted the company\u2019s use for the loans at both properties. For instance, the loans helped Full House retain the player development hosts for both casinos, which happen to be in remote sections of their states.<\/p>\n
The PPP loan for Rising Star, Lee added, will help that casino get back to 400 employees by the time it hopes to reopen in mid-June. After Indiana shut down its casinos two months ago, the active workforce at the Rising Star \u2013 which happens to be the largest employer in the state\u2019s smallest county \u2013 dwindled down to about 20.<\/p>\n
We are kind of prime candidates for the program, and we’re using it the way it’s intended to try to put people back to work,\u201d Lee said.<\/p><\/blockquote>\n
Lee added that the program also incentivizes the company to bring back workers and find new roles for them during the shutdown. Those who worked as bartenders may now be asked to paint, but they\u2019re getting their usual paycheck and benefits, including insurance.<\/p>\n
Repayment a Possibility<\/h2>\n Depending on how quickly Full House can get employees back to work at the two casinos will determine if the company can get the loans forgiven.<\/p>\n
\u201cIt looks at your first eight weeks from when the loan gets funded, we were funded last Friday (May 7),\u201d Lee told analysts. \u201cSo, if we can put people back to work now, it’s kind of subsidized.\u201d<\/p>\n
Some in Congress have been working on legislation that would extend the time frame for bringing workers back and still make the loan forgivable.<\/p>\n
If the Rising Star must pay back part of its loans, the documents filed with the SEC show that the Indiana casino would pay up to $191,000 a month for 18 months starting in December. Bronco Billy\u2019s would pay slightly more than $124,500 a month over the same time.<\/p>\n
Both loans were processed by Nevada State Bank.<\/p>\n
SBA Revises PPP Guidelines<\/h2>\n On Wednesday, the SBA, after consulting with the Department of Treasury, issued additional guidelines regarding who is eligible for PPP loans. The new rules indicate that small businesses can still qualify if they have more than 500 full- and part-time workers, provided they meet the SBA\u2019s definition for its industry.<\/p>\n
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For casino hotels, the standard is average receipts of $35 million annually. However, the SBA also has an alternative standard for any business. Businesses with a \u201ctangible net worth\u201d of no more than $15 million and an average net income after federal taxes of $5 million over the last two full fiscal years also qualify.<\/p>\n<\/div>\n
The guidelines also make subsidiaries owned by large businesses eligible. But those businesses must certify that the current economic climate makes the PPP loan essential for their daily operations.<\/p>\n
\u201cIt is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification,\u201d the agency stated.<\/p>\n
As of the close of trading Thursday, Full House had a market cap of $39.5 million.<\/p>\n","protected":false},"excerpt":{"rendered":"
Full House Resorts Inc., a publicly traded casino operator, received Paycheck Protection Program (PPP) loans totaling more than $5.5 million for two of its five properties. That’s according to documents the Las Vegas-based company filed with the US Securities and Exchange Commission. A nearly $3.4 million loan went to the Rising Star Casino Resort in […]<\/p>\n","protected":false},"author":45,"featured_media":135847,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,13],"tags":[],"acf":[],"yoast_head":"\n
Full House Secures $5.6M in PPP Loans for Casinos in Indiana, Colorado<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n