Billion dollar loan program proposed for event companies, including MiLB

A proposal Billion dollar loan program administered through the Federal Reserve target small event companies, including MiLB teams unable to make payments like rent and utilities on public sports facilities.

The proposal of a bipartite group of American representatives Lori Trahan (D-Mass.), David McKinley (RW.V.), Max Rose (DN.Y.) and Mike simpson (R-Idaho) would extend additional federal coronavirus relief to small businesses facing heightened financial stress due to public health precautions needed to slow the spread of COVID-19.

The goal, according to a press release issued by Trahan’s office, is to help the survival of small businesses that depend on large gatherings and community events, keeping them from going bankrupt. Even if states continue the slow reopening process, most of these businesses will not be able to fully resume operations in the foreseeable future.

This legislation creates a federal loan program of at least $ 1 billion through the Federal Reserve to provide loans to small, community-owned or private businesses with less than $ 35 million in revenue and who are contractually obliged to make lease, rental or bond payments on public property sports facilities, museums or community theaters. The funds resulting from the loans would only be reserved for defined uses such as:

  • Rent for facilities, lease or surety payments or other obligations, including property taxes;
  • Utilities for using the facility;
  • Payroll, including health insurance premiums and other fringe benefits, for employees whose employment is directly related to services rendered in the establishment and whose income does not exceed $ 100,000;
  • Improvements to facilities accepted by the Borrower and, where applicable, the entity or municipality having authority over the budget and operations of the facility;
  • And for other purposes that improve the infrastructure and / or the development of projects surrounding the facility.

You can consult the legislation here.

One of the main objectives of the legislation is to protect community bonds issued for public sports facilities, museums or community theaters, which must be repaid whether or not events take place. The suspension of sports events for Minor League teams, performances at community venues and closed attractions like museums due to COVID-19 does not change these bail agreements, but allows debt repayment.

“People in communities across America have spent months clinging to the hope of returning to a familiar sense of normalcy,” said Trahan by press release. “For many in Lowell, that means watching a Spinners game with family and friends under the lights of LeLacheur Park. However, without additional loan help for Minor League teams and similar small businesses, organizations like the Spinners might not survive this economic downturn. I am proud to present this bipartisan legislation to ensure that companies like the Spinners, who are pillars of their communities, have a chance to fight back to serve their fans and customers again when it is safe. “

“Minor League Baseball is a point of pride for hundreds of small towns and villages across the country,” McKinley said via a press release. “Like many other small businesses in other industries, minor league clubs are struggling. Many of these teams risk closing their doors if they do not have additional loan assistance to get through this crisis. This bipartisan legislation will ensure that minor league baseball, as we know it, can survive and keep the American hobby alive. “

“These teams are part of our communities in every way: they create jobs, memories and have unlimited potential. It is essential that we scale up programs like this so that they continue to enrich our hometowns and our country, ”Rose said via a press release.

“In the ever-changing environment we live in today, a sense of community has become increasingly important,” Simpson said in a press release. “Our Chukars are a staple of the Idaho Falls community and with this legislation we can offer them a lifeline in the form of loans. The Idaho Falls Chukars, like many organizations, have significant local public resources invested in their facilities. Giving up these local gems would be devastating for small towns in America and make our national pastime exclusive to big cities like New York and Los Angeles.

Many of these lawmakers, by the way, were part of the coalition that sought to protect their states’ minor league baseball from elimination via the MLB contraction.

With daily news on the spread of the coronavirus impacting the sports and facilities industries, it’s more important than ever to stay on top of the latest news in the venues industry. That’s why we launched a Venues Digest newsletter focused on coronavirus news in stadiums, stadiums, stadiums, theater and the performing arts. For now, it will be released daily, and for now it will be free for industry professionals. register here.

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