Over $4 billion in loans have been sanctioned for Nevada businesses under a federal rescue package constructed to help small businesses during the COVID-19 pandemic. This information was released by the U.S Treasury Department and revealed that over 42,000 loans were sanctioned for businesses in the Silver State. The state’s hospitality industry is included as a recipient of the loan along with doctors, lawyers, car dealer and other major beneficiaries.
It is worth noting that tourism and gambling, which are Nevada’s biggest industries, have been worst hit during the pandemic to an extent where the state is suffering a budget crisis and unemployment rate in on a rise.
Under the Paycheck Protection Program, the industry to receive more loan money than any other is hospitality, of which eateries and restaurants are an integral part. The loan amount for a full-service restaurant is something between $138 million and $260 million. By that token, casino resorts receive loans between $42 million and $98 million and casinos without hotel facilities receive loans between $32 million and $72 million.
RBG LLC – the company that owns Casablanca resort in Mesquite and NG Washington II and CCLV Luxury Hotel Holding LLC – the company that owns Waldorf Astoria on the Las Vegas Strip are the biggest casino resorts to receive loans between $5 million and $10 million each. Additionally, several strip clubs in the hospitality and nightclub scene of Nevada have also received seizable loans.
Furthermore, Reno Men’s Club, Floyd Mayweather-affiliated Girl Collection are Deja Vu Las Vegas are among other notable businesses to receive loans between $150,000 and $1 million. Worth noting is the fact that legal brothels and strip clubs were ordered to close due to the pandemic. However, the former wasn’t approved to receive loans from the federal government.
Interestingly, Wild Horse Saloon, which is a restaurant attached to Mustang Ranch brothel owned by Lance Gilman has been approved for a loan amount between $150,000 and $350,000. Similarly, Asset Management Group LLC, which is a Nevada business entity, has been approved for a loan between $150,000 and $350,000.
Among the nine people associated with companies that received loans, Nevada’s governor Steve Sisolak is one. His financial firm, which he co-founded with wife Kathy Ong Sisolak has been reported to receive a loan of approximately $62,000. According to a campaign associated with him, the loan program is being administered by the federal government.
It is to be noted that the Paycheck Protection Program is instrumental in the government’s mission to curb the economic slowdown due to the pandemic-triggered shutdowns and uncertainty. It is aimed at helping small businesses remain open and continue the employment of Americans during the pandemic.
With the aid of the program, the federal government is currently supporting low-interest loans of $659 billion that have been written by banks. Provided borrowers utilize the loans on rent, payroll and other similar expenditure, taxpayer money shall pay them off. To qualify, a company must have less than 500 employees.
Meanwhile, the administration has refused to furnish detailed information regarding the recipient of loans under $150,000, which comprise the majority. Therefore, the general public might never know the identity of more than 80% of the beneficiaries (5 million in total). Of course, the sneakiness has lead to an open-records lawsuit filed together by new organisations such as The Associated Press. Nevertheless, the information released showcases the most complete overview of the recipient to date.