This bill requires the Department of the Treasury to implement a program to provide financing of at least $1 billion for loans related to losses incurred as a result of COVID-19 (i.e., coronavirus disease 2019) to certain community-owned or private businesses that have contractual obligations for making lease, rent, or bond payments for publicly owned sports facilities, museums, and community theaters.
Terms for such loans shall include (1) a 15-year term, (2) no requirement to provide collateral or a guaranty, and (3) a maximum loan amount of $25 million. An applicant for such a loan must make a good faith certification that, among other things, (1) the loan request is necessary to support the recipient's ongoing operations; and (2) the recipient will use the loan for purposes directly connected to contracted services, including performances and sporting events.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7023 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7023
To require the Secretary of the Treasury to implement a program that
provides financial assistance to sports facilities, museums, and
community theaters, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 27, 2020
Mrs. Trahan (for herself, Mr. McKinley, Ms. Matsui, Mr. Rose of New
York, Mr. Fitzpatrick, Ms. Haaland, Mr. Ryan, Mr. Trone, Mr. Simpson,
Mr. Courtney, Ms. Slotkin, Mr. Thompson of Pennsylvania, Mr. Loebsack,
Mr. Welch, Mr. Morelle, Ms. Escobar, Ms. Finkenauer, Mr. Higgins of New
York, Mr. Wilson of South Carolina, Mr. King of New York, Mr.
Cunningham, Mr. Carter of Texas, Mr. Brindisi, and Ms. McCollum)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To require the Secretary of the Treasury to implement a program that
provides financial assistance to sports facilities, museums, and
community theaters, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ASSISTANCE FOR SPORTS FACILITIES, MUSEUMS, AND COMMUNITY
THEATERS.
Section 4003 of the CARES Act (15 U.S.C. 9042) is amended by adding
at the end the following:
``(i) Assistance for Sports Facilities, Museums, and Community
Theaters.--
``(1) In general.--The Secretary of the Treasury shall,
using amounts made available under subsection (b)(4), implement
a program that provides financing of not less than
$1,000,000,000 for loans to community-owned or private
businesses that--
``(A) had revenue in 2019 of not more than
$35,000,000; and
``(B) have contractual obligations for making
lease, rent, or bond payments for publicly owned sports
facilities, museums, and community theaters.
``(2) Loan terms.--Any such loan shall have the following
terms and such other terms as the Secretary shall determine:
``(A) A term of 15 years.
``(B) An annualized interest rate of not higher
than the London Inter-bank Offered Rate plus 200 basis
points.
``(C) Not include a requirement to provide
collateral or a guaranty of such loan.
``(D) Not exceed $25,000,000 and shall be in an
amount as determined between the recipient and the
lender (but in no event shall the amount of such loan
be determined based on the recipient's earnings before
interest, taxes, depreciation, and amortization).
``(E) Interest and principal on each such loan
shall be paid as follows:
``(i) For the first 12 months after any
such loan is made, or for such longer period as
the Secretary may determine in his discretion,
no principal or interest shall be due and
payable.
``(ii) From year 2 through year 14 of the
term of any such loan, interest on the
principal amount of such loan shall be payable
monthly and 2.31 percent of the principal
amount of such loan shall be payable at the end
of each such year.
``(iii) In year 15 of the term of any such
loan, interest shall be payable monthly and the
remaining 70 percent of the principal amount of
such loan shall be paid at the end of such
year.
``(F) The recipient shall be permitted to prepay
any such loan at any time without premium or penalty.
``(3) Eligible borrowers.--Any eligible borrower applying
for a loan under this program shall make a good-faith
certification that:
``(A) The uncertainty of economic conditions as of
the date of the application makes necessary the loan
request to support the ongoing operations of the
recipient.
``(B) The recipient reasonably believes that the
positive economic impact generated by the use of the
funds it receives will exceed the loan amount.
``(C) The recipient is an entity or business that
is domiciled in the United States with significant
operations and employees located in the United States.
``(D) The recipient is not a debtor in a bankruptcy
proceeding.
``(E) The recipient is created or organized in the
United States or under the laws of the United States.
``(F) The recipient will use the proceeds of such
loan for purposes directly connected to contracted
services, including performances and sporting events,
at such facility. These eligible purposes shall be:
``(i) Rent, lease, or bond payments or
other obligations (including property taxes) to
the owner of the facility for use of the
facility.
``(ii) Utilities at the facility.
``(iii) Employee compensation, including
benefits, for employees of the recipient whose
employment is directly connected to services
rendered at the facility; provided, no funds
may be used for compensation of an officer or
employee at a rate that would exceed $100,000
per annum.
``(iv) Working capital, trade payables,
insurance premiums, and refunds relating to the
facility.
``(v) Facility improvements agreed to by
the recipient and, if applicable the entity
with authority over the facility's budget and
operations.
``(vi) Other purposes which improve the
infrastructure and/or project development
surrounding the facility.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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