Sec. 223. Save minor league sports grants
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Except as provided in subsection (e)(3), the Administrator shall award covered grants to eligible entities in the order in which applications are received by the Administrator. An eligible entity applying for a covered grant shall make a good faith certification that— the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity; the eligible entity does not have a pending application nor has the eligible entity received a grant under— section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a ); or section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c ); and contains any other information that the Administrator may require.
Subject to section 221(8)(A), the Administrator shall use tax records, and may, in addition, use other reliable sources such as certified accounting statements, with respect to an applicant for a covered grant to determine— the eligibility of the applicant for that covered grant; and the amount of that covered grant to the applicant. An eligible entity may receive only 1 covered grant. The amount of a covered grant made to an eligible entity— shall not exceed $5,000,000; and shall be limited to— 50 percent of the gross receipts of the eligible entity for calendar year 2019 or the fiscal year ending in 2019; 50 percent of the average annual gross receipts of the eligible entity over the 3-year period from calendar year 2016 through calendar year 2018 or the fiscal year ending in 2016 through the fiscal year ending in 2018, if the gross receipts of the eligible entity were negatively impacted by a natural disaster or weather disruption in calendar year 2019 or the fiscal year ending in 2019; an amount based on a formula determined by the Administrator if the eligible entity was not in operation for the entirety of 2019; or an amount based on a formula determined by the Administrator if the eligible entity opened during the period beginning on January 1, 2020 and ending on February 29, 2020.
Except as provided in this subsection, the amount of a covered grant made to an eligible entity shall be equal to the difference between— the pandemic-related revenue loss of the eligible entity; and the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the eligible entity in 2019; for an eligible entity that did not have gross receipts in 2019, because the eligible entity began operating between January 1, 2020 and February 29, 2020, or due to other factors identified by the Administrator, an alternative amount based on a formula to be determined by the Administrator; or for an eligibility that was negatively impacted by a natural disaster or weather disruption in calendar year 2019 or the fiscal year ending in 2019, the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the eligible entity over the 3-year period from calendar year 2016 through calendar year 2018 or the fiscal year ending in 2016 through the fiscal year ending in 2018.
Any amount of a covered grant made to an eligible entity based on estimated gross receipts that is greater than the actual gross receipts of the eligible entity in 2020 shall be returned to the Administrator, who may use those returned funds to make additional covered grants. The full amount of a covered grant made to an eligible entity shall be returned to the Treasury if, during the 3-year period following receipt of the covered grant, the eligible entity— becomes more than 50 percent owned by a private equity fund; becomes or is acquired by a publicly-traded company; or becomes more than 50 percent owned by a major league sports team.
If the Administrator determines that the amounts made available to carry out this subtitle are insufficient to make covered grants to each eligible entity in the amount provided under paragraphs
(1)and (2), the Administrator shall— make covered grants with the available amounts— such that the amount of the covered grant that each such eligible entity would have otherwise received under those paragraphs is reduced by an equal percentage; by establishing a maximum amount for a covered grant made under this clause to ensure that smaller eligible entities still receive covered grants in the amounts provided under those paragraphs; or by providing covered grants in the amounts provided under those paragraphs below a certain threshold (as the Administrator may establish) and reducing covered grants above that threshold by an equal percentage; and in a manner that complies with clause (i), make covered grants to each eligible entity that submits an application for a covered grant during the 21-day period beginning on the date on which the Administrator begins accepting those applications. Nothing in subparagraph
(A)shall prevent the Administrator from— reserving funding for applicants that may be determined to be eligible for a covered grant upon reconsideration; or making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund covered grants to all eligible entities that submit applications is established, upon the completion of the reconsideration process. Amounts received under a covered grant may only be used for expenses incurred, including for reimbursements of expenses already paid by the eligible entity, during the period beginning on March 1, 2020, and ending on the date that is 18 months after the date of enactment of this Act. An eligible entity shall return to the Treasury any amounts received under a covered grant that are not expended on or before the date that is 18 months after the date of disbursement of the covered grant. An eligible entity may use amounts received under a covered grant for— payroll costs, not to exceed a total of $100,000 in annual compensation for any individual employee; payments on any covered rent obligation or other obligation to a public entity from whom the primary venue of the eligible entity is leased or licensed; any covered utility payment; payments of interest or principal due on any covered mortgage obligation; payments of interest or principal due on any indebtedness or debt instrument incurred in the ordinary course of business that is a liability of the eligible entity and was in place or incurred prior to March 1, 2020, including any subsequent renewals, amendments, or extensions of debt instruments in place as of that date; covered worker protection expenditures; payments made to independent contractors, as reported on Form-1099 MISC, not to exceed a total of $100,000 in annual compensation for any individual employee of an independent contractor; and other ordinary and necessary business expenses, including— maintenance expenses; administrative costs, including fees and licensing costs; State and local taxes and fees; operating leases in effect as of March 1, 2020; payments required for insurance on any insurance policy; settling existing debts with vendors; and advertising, production, transportation, and other expenditures relating to the primary venue of the eligible entity or events held at such venue, except that a covered grant may not be used primarily for such expenditures. An eligible entity may not use amounts received under a covered grant— to purchase real estate or to make physical improvements to property unrelated to compliance with social distancing guidelines; for payments of interest or principal for loans originated after March 1, 2020; to invest or re-lend funds; for contributions or expenditures to, or on behalf of, any political party, party committee, or candidate for elective office; or for any other use as may be reasonably prohibited by the Administrator.
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