- Elizabeth Larson
- Posted On
Supervisors support tribes in seeking federal assistance for gaming employees
The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, the $2.2 trillion relief bill passed by Congress last month, established the Paycheck Protection Program.
The program offers forgivable loans to employers who retain employees while dealing with the impacts of the COVID-19 pandemic.
However, tribes and their supporters are asking the federal government to address an action taken by the US Small Business Administration at the end of March which disqualifies tribal gaming businesses from assistance.
On April 8, a bipartisan group of nearly 40 members of Congress – among them, Congressman Mike Thompson, whose district includes southern Lake County – sent a letter to Treasury Secretary Steve Mnuchin and SBA Administrator Jovita Carranza, also raising issues with the SBA’s action.
The letter pointed out that Congress specifically included tribal business concerns, as defined in the HUBZone program, with under 500 employees as being eligible for Paycheck Protection Program loans.
Yet, in spite of Congress’ intent, the Small Business Administration adopted the final rule for implementing the Paycheck Protection Program that makes ineligible tribal businesses such as gaming.
Based on the intent that members of Congress said existed to help tribes, all four of Lake County’s casinos – Konocti Vista, Robinson Rancheria, Running Creek and Twin Pine – would be eligible for the program, as the California Employment Development Department reports each has 249 employees or less.
County officials reported at Tuesday’s board meeting that an estimated 1,000 people work for local gaming businesses, which equates to about 5 percent of Lake County’s workforce.
Tribal chair shares letter
Sherry Treppa, chair of the Habematolel Pomo, which owns and operates Running Creek Casino in Upper Lake, shared with Lake County News a letter she sent on April 6 to the Treasury Department, the White House and the SBA opposing the SBA’s plans for implementing the Paycheck Protection Program.
In her five-page letter, Treppa challenged the SBA’s interpretation of Congress’ wishes and pointed out the damage it would do to tribal businesses as well as local economies.
“Tribes engage in economic development because they lack anything resembling a traditional tax base, owing to centuries of ruinous federal and state policy toward tribes. The role that tribal
economic development plays in ensuring that members of Indian tribes have access to necessities and crucial services cannot be understated. The enormous role tribal enterprises play in regional economies should not be underestimated,” Treppa wrote.
She warned, “If the losses that my Tribe, and others in our situation, have experienced and will continue to experience due to COVID-19 are not remediated the consequences could be truly dire not only for our tribal governments but for the surrounding economies as well – the ripple effect will be felt far beyond our borders.
Treppa also faulted the SBA for applying “outdated morality and public interest concerns” in singling out tribal casinos as part of its program implementation.
She told Lake County News ahead of the supervisors’ discussion that a letter from the board in support of tribes would be great.
“Everything helps,” she said.
Board takes action to support tribes
On Tuesday, Supervisor Rob Brown asked for the Board of Supervisors to also send a letter to the SBA in support of tribal casinos being able to apply for assistance through the Paycheck Protection Program.
The board’s draft letter said that disqualifying tribal government-owned gaming businesses and their employees from receiving help through the program “directly conflicts with both the text and overarching goals of the CARES Act.”
Before the board discussed the letter on Tuesday, Board Chair Moke Simon and Supervisor EJ Crandell recused themselves from the discussion.
Simon is the tribal chair for the Middletown Rancheria and Crandell chairs the Robinson Rancheria tribal council. Both tribes operate casinos, and Simon and Crandell said their tribes have separately written to the government to ask for relief under the program.
Following their recusal, Brown said he wanted to let the public know, “There is no financial conflict for either supervisor,” because not one dime of the relief funding would go to them personally, but would instead be used to pay employees.
Brown said helping the nearly 1,000 employees of tribal businesses in Lake County is what the request was all about.
He added, “I don’t think it’s fair that one group would be denied this just because they’re tribal and other groups would be allowed this because they are not tribal.”
Supervisors Tina Scott and Bruno Sabatier agreed that the county should support the tribes.
The county’s gaming industry, Sabatier noted, is “a huge part of our community. It’s a huge draw for our community,” and also is a part of Lake County’s hospitality industry. He said everyone in the county should be supportive.
There was no public comment before the board voted 3-0 to support sending the letter to the SBA.
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