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.

I 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 Pennsyl- vania, Mr. LOEBSACK, Mr. WELCH, Mr. MORELLE, Ms. ESCOBAR, Ms. FINKENAUER, Mr. HIGGINS of New York, Mr. WILSON of South Caro- lina, 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 fa- cilities, museums, and community theaters, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 19:42 Jun 18, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7023.IH H7023 2 •HR 7023 IH SECTION 1. ASSISTANCE FOR SPORTS FACILITIES, MUSE- 1 UMS, AND COMMUNITY THEATERS. 2 Section 4003 of the CARES Act (15 U.S.C. 9042) 3 is amended by adding at the end the following: 4 ‘‘(i) ASSISTANCE FOR SPORTS FACILITIES, MUSE- 5 UMS, AND COMMUNITY THEATERS.— 6 ‘‘(1) IN GENERAL.—The Secretary of the 7 Treasury shall, using amounts made available under 8 subsection (b)(4), implement a program that pro- 9 vides financing of not less than $1,000,000,000 for 10 loans to community-owned or private businesses 11 that— 12 ‘‘(A) had revenue in 2019 of not more 13 than $35,000,000; and 14 ‘‘(B) have contractual obligations for mak- 15 ing lease, rent, or bond payments for publicly 16 owned sports facilities, museums, and commu- 17 nity theaters. 18 ‘‘(2) LOAN TERMS.—Any such loan shall have 19 the following terms and such other terms as the Sec- 20 retary shall determine: 21 ‘‘(A) A term of 15 years. 22 ‘‘(B) An annualized interest rate of not 23 higher than the London Inter-bank Offered 24 Rate plus 200 basis points. 25 VerDate Sep 11 2014 19:42 Jun 18, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7023.IH H7023 3 •HR 7023 IH ‘‘(C) Not include a requirement to provide 1 collateral or a guaranty of such loan. 2 ‘‘(D) Not exceed $25,000,000 and shall be 3 in an amount as determined between the recipi- 4 ent and the lender (but in no event shall the 5 amount of such loan be determined based on 6 the recipient’s earnings before interest, taxes, 7 depreciation, and amortization). 8 ‘‘(E) Interest and principal on each such 9 loan shall be paid as follows: 10 ‘‘(i) For the first 12 months after any 11 such loan is made, or for such longer pe- 12 riod as the Secretary may determine in his 13 discretion, no principal or interest shall be 14 due and payable. 15 ‘‘(ii) From year 2 through year 14 of 16 the term of any such loan, interest on the 17 principal amount of such loan shall be pay- 18 able monthly and 2.31 percent of the prin- 19 cipal amount of such loan shall be payable 20 at the end of each such year. 21 ‘‘(iii) In year 15 of the term of any 22 such loan, interest shall be payable month- 23 ly and the remaining 70 percent of the 24 VerDate Sep 11 2014 02:46 Jun 18, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7023.IH H7023 4 •HR 7023 IH principal amount of such loan shall be paid 1 at the end of such year. 2 ‘‘(F) The recipient shall be permitted to 3 prepay any such loan at any time without pre- 4 mium or penalty. 5 ‘‘(3) ELIGIBLE BORROWERS.—Any eligible bor- 6 rower applying for a loan under this program shall 7 make a good-faith certification that: 8 ‘‘(A) The uncertainty of economic condi- 9 tions as of the date of the application makes 10 necessary the loan request to support the ongo- 11 ing operations of the recipient. 12 ‘‘(B) The recipient reasonably believes that 13 the positive economic impact generated by the 14 use of the funds it receives will exceed the loan 15 amount. 16 ‘‘(C) The recipient is an entity or business 17 that is domiciled in the United States with sig- 18 nificant operations and employees located in the 19 United States. 20 ‘‘(D) The recipient is not a debtor in a 21 bankruptcy proceeding. 22 ‘‘(E) The recipient is created or organized 23 in the United States or under the laws of the 24 United States. 25 VerDate Sep 11 2014 02:46 Jun 18, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7023.IH H7023 5 •HR 7023 IH ‘‘(F) The recipient will use the proceeds of 1 such loan for purposes directly connected to 2 contracted services, including performances and 3 sporting events, at such facility. These eligible 4 purposes shall be: 5 ‘‘(i) Rent, lease, or bond payments or 6 other obligations (including property taxes) 7 to the owner of the facility for use of the 8 facility. 9 ‘‘(ii) Utilities at the facility. 10 ‘‘(iii) Employee compensation, includ- 11 ing benefits, for employees of the recipient 12 whose employment is directly connected to 13 services rendered at the facility; provided, 14 no funds may be used for compensation of 15 an officer or employee at a rate that would 16 exceed $100,000 per annum. 17 ‘‘(iv) Working capital, trade payables, 18 insurance premiums, and refunds relating 19 to the facility. 20 ‘‘(v) Facility improvements agreed to 21 by the recipient and, if applicable the enti- 22 ty with authority over the facility’s budget 23 and operations. 24 VerDate Sep 11 2014 02:46 Jun 18, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7023.IH H7023 6 •HR 7023 IH ‘‘(vi) Other purposes which improve 1 the infrastructure and/or project develop- 2 ment surrounding the facility.’’. 3 Æ VerDate Sep 11 2014 02:46 Jun 18, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H7023.IH H7023