II 

117TH CONGRESS 

1ST SESSION S. 2233 

To establish a grant program for shuttered minor league baseball clubs, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 24, 2021 

Mr. BLUMENTHAL (for himself, Mrs. BLACKBURN, Mr. WARNER, and Mr. 

KAINE) introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

A BILL 

To establish a grant program for shuttered minor league 

baseball clubs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Minor League Baseball 

5 Relief Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ADMINISTRATOR.—The term ‘‘Adminis9 trator’’ means the Administrator of the Small Busi10 ness Administration. 


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1 (2) COVERED GRANTS.—The term ‘‘covered 

2 grant’’ means a grant made under this Act to an eli3 gible entity. 

4 (3) COVERED LAW.—The term ‘‘covered law’’ 

5 means— 

6 (A) the Coronavirus Preparedness and Re7 sponse Supplemental Appropriations Act, 2020 

8 (Public Law 116–123); 

9 (B) the Families First Coronavirus Re10 sponse Act (Public Law 116–127); 

11 (C) the CARES Act (Public Law 116– 

12 136); 

13 (D) the Paycheck Protection Program and 

14 Health Care Enhancement Act (Public Law 

15 116–139; 134 Stat. 620); 

16 (E) division M or N of the Consolidated 

17 Appropriations Act, 2021 (Public Law 116– 

18 260); or 

19 (F) the American Rescue Plan Act of 2021 

20 (Public Law 117–2). 

21 (4) COVERED MORTGAGE OBLIGATION; COV22 ERED RENT OBLIGATION; COVERED UTILITY PAY23 MENT; COVERED WORKER PROTECTION EXPENDI24 TURE.—The terms ‘‘covered mortgage obligation’’, 

25 ‘‘covered rent obligation’’, ‘‘covered utility payment’’, 


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1 and ‘‘covered worker protection expenditure’’ have 

2 the meanings given those terms in section 7A(a) of 

3 the Small Business Act (15 U.S.C. 636m(a)). 

4 (5) ELIGIBLE ENTITY.—The term ‘‘eligible enti5 ty’’ means any Minor League Baseball Club or Inde6 pendent Professional Baseball Club that meets the 

7 following requirements: 

8 (A) The Minor League Baseball Club or 

9 Independent Professional Baseball Club was op10 erating in the ordinary course of business on 

11 February 29, 2020. 

12 (B) The gross revenues of the Minor 

13 League Baseball Club or Independent Profes14 sional Baseball Club in calendar year 2020 

15 were not more than 25 percent of the gross rev16 enues of the Minor League Baseball Club or 

17 Independent Professional Baseball Club in cal18 endar year 2019, or, if the gross revenues of 

19 the Minor League Baseball Club or Inde20 pendent Professional Baseball Club were nega21 tively impacted by a natural disaster or weather 

22 disruption in 2019, not more than 25 percent 

23 of the average annual gross revenues of the 

24 Minor League Baseball Club or Independent 

25 Professional Baseball Club over the 3-year peVerDate Sep 11 2014 00:19 Jul 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2233.IS S2233

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1 riod from 2016 through 2018, as determined by 

2 the Administrator using the accrual method of 

3 accounting and excluding any amounts received 

4 any amounts received under the CARES Act 

5 (15 U.S.C. 9001 et seq.), an amendment to 

6 such Act, the Consolidated Appropriations Act, 

7 2021 (Public Law 116–260), or any subsequent 

8 COVID Relief package. 

9 (C) At the time the Minor League Baseball 

10 Club or Independent Professional Baseball Club 

11 submits the certification required under section 

12 3(c), the Minor League Baseball Club or Inde13 pendent Professional Baseball Club is open, or 

14 intends to reopen, for the primary purpose of 

15 conducting baseball games. 

16 (D) The Minor League Baseball Club or 

17 Independent Professional Baseball Club is not 

18 majority owned, directly or indirectly, by Major 

19 League Baseball, a Major League Baseball 

20 Club, or one or more persons who have a great21 er than 10 percent ownership interest in a 

22 Major League Baseball Club. 

23 (6) INDEPENDENT PROFESSIONAL BASEBALL

24 CLUB.—The term ‘‘Independent Professional Base25 ball Club’’ means a professional baseball team, inVerDate Sep 11 2014 00:19 Jul 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2233.IS S2233

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1 cluding a professional baseball team that is a cor2 poration, limited liability company, or a partnership 

3 or operated as a sole proprietorship, that— 

4 (A) operates for profit or as a nonprofit 

5 organization; 

6 (B) is located in the United States; and 

7 (C) as of February 29, 2020, was a mem8 ber of— 

9 (i) the American Association of Pro10 fessional Baseball; 

11 (ii) the Atlantic League of Profes12 sional Baseball; 

13 (iii) the Canadian American Associa14 tion of Professional Baseball; 

15 (iv) the Empire Professional Baseball 

16 League; 

17 (v) the Frontier League; 

18 (vi) the Pacific Association of Profes19 sional Baseball Clubs; 

20 (vii) the Pecos League of Professional 

21 Baseball Clubs; 

22 (viii) the United Shore Professional 

23 Baseball League; or 

24 (ix) the Western League. 


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1 (7) MINOR LEAGUE BASEBALL CLUB.—The 

2 term ‘‘Minor League Baseball Club’’ means a profes3 sional baseball team, including a professional base4 ball team that is a corporation, limited liability com5 pany, or a partnership or operated as a sole propri6 etorship, that— 

7 (A) operates for profit or as a nonprofit 

8 organization; 

9 (B) is located in the United States; and 

10 (C)(i) as of February 29, 2020, was a 

11 member of a league that was a member of the 

12 National Association of Professional Baseball 

13 Leagues, Inc.; or 

14 (ii) has been offered and is operating or 

15 has agreed to operate under— 

16 (I) a Player Development License 

17 granted by MLB Professional Development 

18 Leagues, LLC; or 

19 (II) a license granted by Appalachian 

20 League, Inc. 

21 (8) PAYROLL COSTS.—The term ‘‘payroll costs’’ 

22 has the meaning given the term in section 

23 7(a)(36)(A) of the Small Business Act (15 U.S.C. 

24 636(a)(36)). 


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1 SEC. 3. GRANTS FOR CERTAIN MINOR LEAGUE BASEBALL 

2 CLUBS. 

3 (a) IN GENERAL.—The Administrator shall, subject 

4 to the availability of appropriations, make covered grants 

5 to eligible entities in accordance with this section. 

6 (b) AUTHORITY.—The Associate Administrator for 

7 the Office of Disaster Assistance of the Small Business 

8 Administration shall coordinate and formulate policies re9 lating to the administration of covered grants. 

10 (c) CERTIFICATION OF NEED.—An eligible entity ap11 plying for a covered grant shall submit a good faith certifi12 cation that the uncertainty of current economic conditions 

13 makes necessary the grant to support the ongoing oper14 ations of the eligible entity. 

15 (d) MULTIPLE BUSINESS ENTITIES.—The Adminis16 trator shall treat each eligible entity as an independent, 

17 non-affiliated entity for the purposes of this section. 

18 (e) GRANT TERMS.— 

19 (1) NUMBER OF GRANTS.— 

20 (A) IN GENERAL.—Except as provided in 

21 subparagraph (B), an eligible entity may receive 

22 only 1 covered grant. 

23 (B) SUPPLEMENTAL GRANT.—The Admin24 istrator may make a second covered grant to an 

25 eligible entity if, as of June 30, 2021, the gross 

26 revenues of such eligible entity for calendar 


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1 year 2021 as of such date are not more than 

2 30 percent of the gross revenues of such eligible 

3 entity for the corresponding period of 2019, or, 

4 if the gross revenues of the eligible entity were 

5 negatively impacted by a natural disaster or 

6 weather disruption in 2019, not more than 30 

7 percent of the average gross revenues of the eli8 gible entity during the first 6 months of 2016, 

9 2017, and 2018, due to the COVID–19 pan10 demic. 

11 (2) AMOUNT.— 

12 (A) IN GENERAL.—Except as provided in 

13 subparagraph (B), a covered grant shall be in 

14 an amount equal to the lesser of— 

15 (i) the amount equal to 45 percent of 

16 the gross revenues of the eligible entity for 

17 2019, or, if the gross revenues of the eligi18 ble entity were negatively impacted by a 

19 natural disaster or weather disruption in 

20 2019, equal to 45 percent of the average 

21 annual gross revenues of the eligible entity 

22 over the 3-year period from 2016 through 

23 2018, which shall include the gross reve24 nues of all subsidiaries and other related 

25 entities that are consolidated with the 


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1 gross revenues of the eligible entity in a fi2 nancial statement prepared in accordance 

3 with generally accepted accounting prin4 ciples for such eligible entity for such year; 

5 or 

6 (ii) $10,000,000. 

7 (B) SUPPLEMENT GRANT AMOUNT.—A 

8 covered grant made pursuant to paragraph 

9 (1)(B) shall be in an amount equal to 50 per10 cent of the first covered grant received by the 

11 eligible entity. 

12 (3) GRANT AGGREGATE MAXIMUM.—The total 

13 amount of covered grants received by an eligible en14 tity may not exceed $10,000,000. 

15 (4) USE OF FUNDS.— 

16 (A) TIMING.— 

17 (i) EXPENSES INCURRED.— 

18 (I) IN GENERAL.—Except as pro19 vided in subclause (II), amounts re20 ceived under a covered grant may only 

21 be used for expenses incurred during 

22 the period beginning on March 1, 

23 2020 and ending on December 31, 

24 2021. 


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1 (II) EXTENSION FOR SUPPLE2 MENTAL GRANTS.—If an eligible enti3 ty receives a grant under paragraph 

4 (1)(B), amounts received under a cov5 ered grant may be used for costs in6 curred during the period beginning on 

7 March 1, 2020 and ending September 

8 30, 2022. 

9 (ii) EXPENDITURE.— 

10 (I) IN GENERAL.—Except as pro11 vided in subclause (II), an eligible en12 tity shall return to the Administrator 

13 any amounts received under a covered 

14 grant that are not expended on or be15 fore the date that is 1 year after the 

16 date of disbursement of the covered 

17 grant. 

18 (II) EXTENSION FOR SUPPLE19 MENTAL GRANTS.—If an eligible enti20 ty receives a grant under paragraph 

21 (1)(B), the eligible entity shall return 

22 to the Administrator any amounts re23 ceived under any covered grant that 

24 are not expended on or before the 

25 date that is 18 months after the date 


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1 of disbursement of the first covered 

2 grant received by the eligible entity. 

3 (B) ALLOWABLE EXPENSES.—An eligible 

4 entity may use amounts received under a cov5 ered grant for— 

6 (i) payroll costs; 

7 (ii) payments on any covered rent ob8 ligation or other obligation to a public enti9 ty from whom the primary venue of the eli10 gible entity is leased or licensed; 

11 (iii) any covered utility payment; 

12 (iv) payments of interest or principal 

13 due on any covered mortgage obligation; 

14 (v) payments of interest or principal 

15 due on any indebtedness or debt instru16 ment incurred in the ordinary course of 

17 business that is a liability of the eligible 

18 entity and was in place or incurred prior to 

19 February 15, 2020; 

20 (vi) covered worker protection expend21 itures; 

22 (vii) payments made to independent 

23 contractors, as reported on Form-1099 

24 MISC, not to exceed a total of $100,000 in 

25 annual compensation for any individual 


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1 employee of an independent contractor; 

2 and 

3 (viii) other ordinary and necessary 

4 business expenses, including— 

5 (I) maintenance expenses; 

6 (II) administrative costs, includ7 ing fees and licensing costs; 

8 (III) State and local taxes and 

9 fees; 

10 (IV) operating leases in effect as 

11 of February 15, 2020; 

12 (V) payments required for insur13 ance on any insurance policy; 

14 (VI) settling existing debts with 

15 vendors; and 

16 (VII) advertising, production, 

17 transportation, and capital expendi18 tures relating to the primary venue of 

19 the eligible entity or events held at 

20 such venue, except that a grant under 

21 this section may not be used primarily 

22 for such expenditures. 

23 (C) PROHIBITED EXPENSES.—An eligible 

24 entity may not use amounts received under a 

25 grant under this section— 


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1 (i) to purchase real estate; 

2 (ii) for payments of interest or prin3 cipal for loans originated after February 

4 15, 2020; 

5 (iii) to invest or re-lend funds; 

6 (iv) for contributions or expenditures 

7 to, or on behalf of, any political party, 

8 party committee or candidate for elective 

9 office; or 

10 (v) for any other use as may be rea11 sonably prohibited by the Administrator. 

12 (f) INCREASED OVERSIGHT.—The Administrator 

13 shall increase oversight of eligible entities receiving cov14 ered grants, which may include the following: 

15 (1) DOCUMENTATION.—Additional documenta16 tion requirements that are consistent with the eligi17 bility and other requirements under this section, in18 cluding requiring an eligible entity that receives a 

19 grant under this section to retain records that docu20 ment compliance with the requirements for grants 

21 under this section— 

22 (A) with respect to employment records, 

23 for the 4-year period following receipt of the 

24 grant; and 


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1 (B) with respect to other records, for the 

2 3-year period following receipt of the grant. 

3 (2) REVIEWS OF USE.—Reviews of the use of 

4 the grant proceeds by an eligible entity to ensure the 

5 compliance with requirements established under this 

6 section and by the Administrator, including that the 

7 Administrator may— 

8 (A) review and audit grants under this sec9 tion; and 

10 (B) in the case of fraud of other material 

11 noncompliance with respect to a grant under 

12 this section— 

13 (i) require repayment of misspent 

14 funds; or 

15 (ii) pursue legal action to collect 

16 funds. 

17 (g) OVERSIGHT AND AUDIT PLAN.— 

18 (1) IN GENERAL.—Not later than 45 days after 

19 the date of enactment of this Act, the Administrator 

20 shall submit to the Committee on Small Business 

21 and Entrepreneurship of the Senate and the Com22 mittee on Small Business of the House of Rep23 resentatives an audit plan that details— 


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1 (A) the policies and procedures of the Ad2 ministrator for conducting oversight and audits 

3 of covered grants; and 

4 (B) the metrics that the Administrator 

5 shall use to determine which covered grants will 

6 be audited pursuant to subsection (f). 

7 (2) REPORT.—Not later than 60 days after the 

8 date of enactment of this Act, and each month 

9 thereafter until the date that is 1 year after the date 

10 on which all amounts appropriated to make covered 

11 grants have been expended, the Administrator shall 

12 submit to the Committee on Small Business and En13 trepreneurship of the Senate and the Committee on 

14 Small Business of the House of Representatives a 

15 report on the oversight and audit activities of the 

16 Administrator under this subsection, which shall in17 clude— 

18 (A) the total number of covered grants ap19 proved and disbursed; 

20 (B) the total amount of covered grants re21 ceived by each eligible entity; 

22 (C) the number of active investigations and 

23 audits of covered grants; 

24 (D) the number of completed reviews and 

25 audits of covered grants, including a description 


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1 of any findings of fraud or other material non2 compliance; and 

3 (E) any substantial changes made to the 

4 oversight and audit plan submitted under para5 graph (1). 

6 (h) TAX TREATMENT OF COVERED LOANS.— 

7 (1) IN GENERAL.—For the purposes of the In8 ternal Revenue Code of 1986— 

9 (A) no covered grant shall be included in 

10 the gross income of the eligible entity that re11 ceives such covered grant; 

12 (B) no deduction shall be denied, no tax 

13 attribute shall be reduced, and no basis increase 

14 shall be denied, by reason of the exclusion from 

15 gross income provided by subparagraph (A); 

16 and 

17 (C) in the case of a partnership or S cor18 poration that receives such a covered grant— 

19 (i) any amount excluded from income 

20 by reason of subparagraph (A) shall be 

21 treated as tax exempt income for purposes 

22 of sections 705 and 1366 of the Internal 

23 Revenue Code of 1986; and 

24 (ii) the Secretary of the Treasury (or 

25 the Secretary’s delegate) shall prescribe 


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1 rules for determining a partner’s distribu2 tive share of any amount described in 

3 clause (i) for purposes of section 705 of 

4 the Internal Revenue Code of 1986. 

5 (2) APPLICABILITY.—Paragraph (1) shall apply 

6 to taxable years ending after the date of enactment 

7 of this Act. 

8 (i) FUNDING.—Notwithstanding any provision of cov9 ered law, from any funds appropriated under such a law 

10 that have not been obligated as of the date of enactment 

11 of this Act and are no longer being used to carry out the 

12 activities under such a law, the remaining funds or 

13 $550,000,000, whichever is greater, but in any case not 

14 more than $550,000,000, shall be allocated to the Admin15 istrator to carry out this section, of which not more than 

16 $50,000,000 shall be allocated to Independent Profes17 sional Baseball Clubs. 

Æ 


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