Title: 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.
Policy area: Commerce

Summary:
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)]

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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.''.
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