7(a)(36)(A) of the Small Business Act (15 U.S.C. 
636(a)(36)). 
SEC. 3. GRANTS FOR CERTAIN MINOR LEAGUE BASEBALL 
CLUBS. 
(a) IN GENERAL.—The Administrator shall, subject 
to the availability of appropriations, make covered grants 
to eligible entities in accordance with this section. 
(b) AUTHORITY.—The Associate Administrator for 
the Office of Disaster Assistance of the Small Business 
Administration shall coordinate and formulate policies re-
lating to the administration of covered grants. 
(c) CERTIFICATION OF NEED.—An eligible entity ap-
plying for a covered grant shall submit a good faith certifi-
cation that the uncertainty of current economic conditions 
makes necessary the grant to support the ongoing oper-
ations of the eligible entity. 
(d) MULTIPLE BUSINESS ENTITIES.—The Adminis-
trator shall treat each eligible entity as an independent, 
non-affiliated entity for the purposes of this section. 
(e) GRANT TERMS.— 
(1) NUMBER OF GRANTS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), an eligible entity may receive 
only 1 covered grant. 
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(B) SUPPLEMENTAL GRANT.—The Admin-
istrator may make a second covered grant to an 
eligible entity if, as of June 30, 2021, the gross 
revenues of such eligible entity for calendar 
year 2021 as of such date are not more than 
30 percent of the gross revenues of such eligible 
entity for the corresponding period of 2019, or, 
if the gross revenues of the eligible entity were 
negatively impacted by a natural disaster or 
weather disruption in 2019, not more than 30 
percent of the average gross revenues of the eli-
gible entity during the first 6 months of 2017, 
2018, and 2019, due to the COVID–19 pan-
demic. 
(2) AMOUNT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), a covered grant shall be in 
an amount equal to the lesser of— 
(i) the amount equal to 45 percent of 
the gross revenues of the eligible entity for 
2019, or, if the gross revenues of the eligi-
ble entity were negatively impacted by a 
natural disaster or weather disruption in 
2019, equal to 45 percent of the average 
annual gross revenues of the eligible entity 
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over the 3-year period from 2016 through 
2018, which shall include the gross reve-
nues of all subsidiaries and other related 
entities that are consolidated with the 
gross revenues of the eligible entity in a fi-
nancial statement prepared in accordance 
with generally accepted accounting prin-
ciples for such eligible entity for such year; 
or 
(ii) $10,000,000. 
(B) SUPPLEMENT
GRANT
AMOUNT.—A 
covered grant made pursuant to paragraph 
(1)(B) shall be in an amount equal to 50 per-
cent of the first covered grant received by the 
eligible entity. 
(3) GRANT AGGREGATE MAXIMUM.—The total 
amount of covered grants received by an eligible en-
tity may not exceed $10,000,000. 
(4) USE OF FUNDS.— 
(A) TIMING.— 
(i) EXPENSES INCURRED.— 
(I) IN GENERAL.—Except as pro-
vided in subclause (II), amounts re-
ceived under a covered grant may only 
be used for expenses incurred during 
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the period beginning on March 1, 
2020, and ending on December 31, 
2021. 
(II) EXTENSION
FOR
SUPPLE-
MENTAL GRANTS.—If an eligible enti-
ty receives a grant under paragraph 
(1)(B), amounts received under a cov-
ered grant may be used for costs in-
curred during the period beginning on 
March 1, 2020, and ending September 
30, 2022. 
(ii) EXPENDITURE.— 
(I) IN GENERAL.—Except as pro-
vided in subclause (II), an eligible en-
tity shall return to the Administrator 
any amounts received under a covered 
grant that are not expended on or be-
fore the date that is 1 year after the 
date of disbursement of the covered 
grant. 
(II) EXTENSION
FOR
SUPPLE-
MENTAL GRANTS.—If an eligible enti-
ty receives a grant under paragraph 
(1)(B), the eligible entity shall return 
to the Administrator any amounts re-
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ceived under any covered grant that 
are not expended on or before the 
date that is 18 months after the date 
of disbursement of the first covered 
grant received by the eligible entity. 
(B) ALLOWABLE EXPENSES.—An eligible 
entity may use amounts received under a cov-
ered grant for— 
(i) payroll costs; 
(ii) payments on any covered rent ob-
ligation or other obligation to a public enti-
ty from whom the primary venue of the eli-
gible entity is leased or licensed; 
(iii) any covered utility payment; 
(iv) payments of interest or principal 
due on any covered mortgage obligation; 
(v) payments of interest or principal 
due on any indebtedness or debt instru-
ment incurred in the ordinary course of 
business that is a liability of the eligible 
entity and was in place or incurred prior to 
February 15, 2020; 
(vi) covered worker protection expend-
itures; 
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(vii) 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 
(viii) other ordinary and necessary 
business expenses, including— 
(I) maintenance expenses; 
(II) administrative costs, includ-
ing fees and licensing costs; 
(III) State and local taxes and 
fees; 
(IV) operating leases in effect as 
of February 15, 2020; 
(V) payments required for insur-
ance on any insurance policy; 
(VI) settling existing debts with 
vendors; and 
(VII) 
advertising, 
production, 
transportation, and capital expendi-
tures relating to the primary venue of 
the eligible entity or events held at 
such venue, except that a grant under 
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this section may not be used primarily 
for such expenditures. 
(C) PROHIBITED EXPENSES.—An eligible 
entity may not use amounts received under a 
grant under this section— 
(i) to purchase real estate; 
(ii) for payments of interest or prin-
cipal for loans originated after February 
15, 2020; 
(iii) to invest or re-lend funds; 
(iv) for contributions or expenditures 
to, or on behalf of, any political party, 
party committee or candidate for elective 
office; or 
(v) for any other use as may be rea-
sonably prohibited by the Administrator. 
(f) INCREASED
OVERSIGHT.—The Administrator 
shall increase oversight of eligible entities receiving cov-
ered grants, which may include the following: 
(1) DOCUMENTATION.—Additional documenta-
tion requirements that are consistent with the eligi-
bility and other requirements under this section, in-
cluding requiring an eligible entity that receives a 
grant under this section to retain records that docu-
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ment compliance with the requirements for grants 
under this section— 
(A) with respect to employment records, 
for the 4-year period following receipt of the 
grant; and 
(B) with respect to other records, for the 
3-year period following receipt of the grant. 
(2) REVIEWS OF USE.—Reviews of the use of 
the grant proceeds by an eligible entity to ensure the 
compliance with requirements established under this 
section and by the Administrator, including that the 
Administrator may— 
(A) review and audit grants under this sec-
tion; and 
(B) in the case of fraud of other material 
noncompliance with respect to a grant under 
this section— 
(i) require repayment of misspent 
funds; or 
(ii) pursue legal action to collect 
funds. 
(g) OVERSIGHT AND AUDIT PLAN.— 
(1) IN GENERAL.—Not later than 45 days after 
the date of enactment of this Act, the Administrator 
shall submit to the Committee on Small Business 
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and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Rep-
resentatives an audit plan that details— 
(A) the policies and procedures of the Ad-
ministrator for conducting oversight and audits 
of covered grants; and 
(B) the metrics that the Administrator 
shall use to determine which covered grants will 
be audited pursuant to subsection (f). 
(2) REPORT.—Not later than 60 days after the 
date of enactment of this Act, and each month 
thereafter until the date that is 1 year after the date 
on which all amounts appropriated to make covered 
grants have been expended, the Administrator shall 
submit to the Committee on Small Business and En-
trepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a 
report on the oversight and audit activities of the 
Administrator under this subsection, which shall in-
clude— 
(A) the total number of covered grants ap-
proved and disbursed; 
(B) the total amount of covered grants re-
ceived by each eligible entity; 
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(C) the number of active investigations and 
audits of covered grants; 
(D) the number of completed reviews and 
audits of covered grants, including a description 
of any findings of fraud or other material non- 
compliance; and 
(E) any substantial changes made to the 
oversight and audit plan submitted under para-
graph (1). 
(h) TAX TREATMENT OF COVERED LOANS.— 
(1) IN GENERAL.—For the purposes of the In-
ternal Revenue Code of 1986— 
(A) no covered grant shall be included in 
the gross income of the eligible entity that re-
ceives such covered grant; 
(B) no deduction shall be denied, no tax 
attribute shall be reduced, and no basis increase 
shall be denied, by reason of the exclusion from 
gross income provided by subparagraph (A); 
and 
(C) in the case of a partnership or S cor-
poration that receives such a covered grant— 
(i) any amount excluded from income 
by reason of subparagraph (A) shall be 
treated as tax exempt income for purposes 
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of sections 705 and 1366 of the Internal 
Revenue Code of 1986; and 
(ii) the Secretary of the Treasury (or 
the Secretary’s delegate) shall prescribe 
rules for determining a partner’s distribu-
tive share of any amount described in 
clause (i) for purposes of section 705 of 
the Internal Revenue Code of 1986. 
(2) APPLICABILITY.—Paragraph (1) shall apply 
to taxable years ending after the date of enactment 
of this Act. 
(i) FUNDING.—Notwithstanding any provision of cov-
ered law, from any funds appropriated under such a law 
that have not been obligated as of the date of enactment 
of this Act and are no longer being used to carry out the 
activities under such a law, the remaining funds or 
$550,000,000, whichever is greater, but in any case not 
more than $550,000,000, shall be allocated to the Admin-
istrator to carry out this section, of which not more than 
$50,000,000 shall be allocated to Independent Profes-
sional Baseball Clubs. 
Æ 
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