This month we will take a look\nat the business assistance package what were available during the pandemic.<\/p>\n\n\n\n
The unprecedented shutdown\ncaused by the coronavirus severely impacted the operations of most sports and\nentertainment entities.<\/p>\n\n\n\n
The Coronavirus Aid, Relief and\nEconomic Security (CARES) Act was signed into law which created several\nprograms designed to support companies in different ways.<\/p>\n\n\n\n
The Paycheck Protections\nProgram (PPP) was designed to provide a direct incentive to small businesses to\nkeep their employees on the payroll. The Small Business Administration would\nforgive the loans if certain retention criteria were met and funds were used\nfor eligible expenses (payroll, rent, etc.). \n<\/p>\n\n\n\n
To qualify for the program,\ncompanies would have to less then 500 employees, use 75% of the funds for payroll. <\/p>\n\n\n\n
Companies would apply for the\nloan thru lenders participating in the program. There original deadline was\nlate June but was extended to early August.<\/p>\n\n\n\n
Loan size would be up to $10\nmillion, term of two years, interest rate at 1%, and not personal guarantees\nand collateral were required. The loans\nwould be forgivable if certain criteria were met (maintaining head count,\nrehiring employees, and maintaining salary levels.) <\/p>\n\n\n\n
The PPP was funded with $659\nbillion. There were almost 5 million\ncompanies approved. <\/p>\n\n\n\n
Recipients from the sports\nindustry made the list of those receiving funds. There were approximately 600\nsports organizations that received loans, totaling $665 million and preserving\napproximately 36,000 jobs. <\/p>\n\n\n\n
None of the major leagues \u2013\nNFL, NBA, NBA, and NHL applied. It is believed that NASCAR Holdings, LLC and Penske\/IndyCar\/IMS\ndid not participate because they may have exceeded the employee size threshold.<\/p>\n\n\n\n
Specifically, for motorsports,\nthere were approximately 65 companies approved for $78.5 million in loans which\nwould retain almost 4,000 jobs.<\/p>\n\n\n\n
The list included about twenty\nrelated NASCAR teams, eight IndyCar teams, four IMSA teams, and four tracks and\nsanctioning bodies.<\/p>\n\n\n\n
The largest recipients were\nRichard Childress Racing, Chip Ganassi Racing, Roush Fenway Racing and Roush\nYates Engines and Andretti Autosport. Their loans ranged from $2.0 to $10.0\nmillion while each retaining over 130 employees.<\/p>\n\n\n\n
Other entities included: JR\nMotorsports, Richard Petty Motorsports, Arrow McLaren, Pocono Raceway and World\nRacing Group.<\/p>\n\n\n\n
The goal of the PPP program was\nto allow companies to keep employees on the payroll. <\/p>\n\n\n\n
This was extremely important to\nmotorsports since they were off the track for almost two months. Once teams were given to green flag to resume\nracing in mid-May, they brought their workforces back to the shops to get cars\nprepped for the races.<\/p>\n\n\n\n
Funding from sponsors probably\nvaried during the shutdown. Depending on\nthe agreements, payments may have been tied to on-track performance, or some may not have the ability to make team\npayments and sought relief during the shutdown.<\/p>\n\n\n\n
Flexibility remains key during\nthis continued period of uncertainty. Stakeholders utilized all options and worked\ntogether to keep motorsports on track and taking the green flag.<\/p>\n","protected":false},"excerpt":{"rendered":"
This month we will take a look at the business assistance package what were available during the pandemic. The unprecedented shutdown caused by the coronavirus severely impacted the operations of most sports and entertainment entities. The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law which created several programs designed to support […]<\/p>\n","protected":false},"author":5,"featured_media":816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/815"}],"collection":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=815"}],"version-history":[{"count":1,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/815\/revisions"}],"predecessor-version":[{"id":817,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/815\/revisions\/817"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/media\/816"}],"wp:attachment":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=815"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}