WHAT IS THE CARES ACT, AND HOW DOES IT AFFECT MY SPORTS LEAGUE?
On March 19th, 2020, the U.S. Government passed a massive stimulus package called the CARE Act, designed to help several sectors of the U.S. economy and the American people as they navigate through the COVID-19 (Coronavirus) pandemic.
The Act earmarks $370 billion for small businesses and nonprofits, which is good news for any sports organization that has fewer than 500 employees. There are a few ways this Act can help you both short term and long term through grants, loans, and benefits to people who donate to your organization.
To simplify how this impacts you, we have detailed the important aspects of the CARE Act and how you can apply for relief:
Your league could be eligible to recieve a loan advance of up to $10k to aid with ongoing costs such as payroll, equipment costs, facility rentals, and other bill payments that are immediately impacted due to COVID-19.
This Act has also set aside funds for payroll protection for small businesses and eligible nonprofits described in the Small Business Act. If you are self-employed or serve as an independent contractor for your organization, you may also be eligible through this program if you meet the program size standards.
If your organization is in need of a longer-term loan, the Act includes programs that will provide small business financial support to bridge the gap while they are unable to generate all or some of their revenues.
BENEFITS FOR DONORS
If you are running a fundraiser or are thinking of running a fundraiser, the stimulus Act also includes additional incentives for people who are giving during this period.