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Trahan, McKinley, Rose, Simpson Introduce Legislation to Provide Additional COVID-19 Relief to Minor League Baseball Teams, Other Small Businesses

 Trahan, McKinley, Rose, Simpson Introduce Legislation to Provide Additional COVID-19 Relief to Minor League Baseball Teams, Other Small Businesses

 Today, Save Minor League Baseball Task Force Co-Chairs Congresswoman Lori Trahan (MA-03), Congressman David McKinley (WV-01), Congressman Max Rose (NY-11), and Congressman Mike Simpson (ID-02) introduced bipartisan legislation to extend additional federal coronavirus relief to small businesses, including Minor League Baseball teams, who face exacerbated financial stress because of the public health precautions necessary to slow the spread of COVID-19. 

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

“People in communities across America have spent months clinging to the hope of returning to a familiar sense of normalcy. For many in Lowell, that means catching a Spinners game with family and friends under the lights at LeLacheur Park. However, without additional loan assistance for Minor League teams and similar small businesses, organizations like the Spinners may not survive this economic crisis. I’m proud to introduce this bipartisan legislation to ensure that businesses like the Spinners, who are pillars of their communities, have a fighting chance to once again serve their fans and patrons when it is safe to do so,” said Congresswoman Trahan.

“Minor League Baseball is a point of pride to hundreds of small cities and towns across the country,” said Congressman McKinley. “Like many other small businesses in other industries, minor league clubs are struggling. Many of these teams are at risk of closing their doors if they don’t have additional loan assistance to make it through this crisis. This bipartisan legislation will ensure minor league baseball as we know it can survive and keep America’s pastime alive.”

“These teams are a part of our communities in every single way: they create jobs, memories, and have limitless potential. It is critical we step up with programs like this so that they continue enriching our hometowns and country,” said Congressman Rose.

Despite robust federal funding for the Economic Injury Disaster Loan program and the newly created Paycheck Protection Program, small businesses that rely on large gatherings and community-based events remain on the verge of going out of business. Even as states continue the slow process of reopening, most of these businesses will be unable to fully resume operations for the foreseeable future. Without access to additional federal relief to stay afloat, these organizations, including many Minor League Baseball teams, may not survive.

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

  • Facility rent, lease, or bond payments or other obligations, including property taxes; 
  • Utilities for use of the facility; 
  • Payroll, including health insurance premiums and other employee benefits, for employees whose employment is directly connected to services rendered at the facility and whose income does not exceed $100,000; 
  • Facility improvements agreed to by the Borrower and, if applicable, the entity or municipality with authority over the facility’s budget and operations; 
  • And other purposes which improve the infrastructure and/or project development surrounding the facility.

In many cases, communities approved bonds for their facilities’ construction, which must be repaid regardless of whether events are taking place. The suspension of athletic events for Minor League teams, performances at community venues, and closed attractions like museums due to COVID-19 does not amend these bond agreements. In fact, communities are more reliant than ever upon rent payments from businesses to repay those bonds or as a reliable source of budget revenue. These revenue streams are in serious doubt without additional relief from the loan program proposed in this legislation.

Trahan and McKinley introduced this legislation with the bipartisan support of 20 original cosponsors. A copy of the legislation as introduced can be accessed by clicking HERE.