Editor’s Note: The following competition bulletin was issued by MX Sports, which promotes motocross, GNCC cross-country, and ATV races, including the (outdoor) AMA Motocross Championship. The listed programs can also apply to professional road racers, crew members, teams, promoters, racetracks, and other companies involved in road racing, as well as, in certain cases, track day-related businesses, paid crew members and instructors. Thanks to Racer Productions and the Coombs family and staff for making this available to roadracingworld.com.
Financial Relief Available to Pro Athletes and Promoters
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides financial assistance through a series of emergency loans and grants to large and small businesses to assist them during this difficult economic period. In addition to providing financial support to businesses, the program also provides assistance to independent contractors and self-employed individuals, which includes many of our professional athletes and their agents.
In the sport of professional motorcycle/ATV competition, including Pro Motocross, GNCC and ATVMX, most of our pro athletes and promoters operate as either small business entities (LLC or S-corporations), independent contractors or are self-employed. To help navigate the complicated application process for these funding programs, the Motorcycle Industry Council (MIC) has prepared a summary of resources and contact information. The MIC COVID-19 Economic Assistance Resources summary outlines the various financial assistance programs available to our pro athletes.
https://mic.org/Downloads/COVID/EconomicAssistanceResources.pdf
Individuals and companies that have been adversely impacted by the crisis are encouraged to explore how these programs may assist them until our sport returns to competition. To summarize:
Emergency Economic Injury Disaster Loans (EIDL): Pro athletes and businesses may be eligible for up to $2 million in loans, as well as a $10,000 1-time cash grant. The application process is easy and available online. You will need your SSN or EIN and bank account and routing numbers. You will know if you are approved for the $10,000 grant within 3 days and the money will be directly wired to your account. https://covid19relief.sba.gov/#/
Paycheck Protection Program (PPP): If you have employees and continue to pay them during the crisis, you may be eligible for payroll protection. This program pays 2.5 times your monthly payroll costs and is 100% forgivable, so long as you don’t reduce your payroll by more than 25%. Starting April 10th, independent contractors and self-employed individuals (pro athletes) may also apply for loans of up to $100,000 to cover the loss of income and net earnings from self-employment during this time. These loans are forgivable as well.
This program is administered through the Small Business Association (SBA) but you must apply through your local bank. Applications close June 30th and there is a funding cap, so apply now. The 6-digit NAICS Code for independent professional racers is 711219.
Tax Credits: Several tax credit programs are available and should be exercised if applicable. You will need to consult with your tax advisor to take advantage of these tax credits:
a. Payroll tax credit
b. Social Security tax deferment
c. Net operating loss 5-year carry back with full offset
d. Increase in business interest expense deductions
e. Immediate recovery of corporate alternative minimum tax credits
f. Immediate write-off for facility improvement costs (i.e., racetrack upgrades?)
We hope this information has been helpful to our professional athletes and promoters. The RLT will continue to provide weekly updates regarding event schedules, postponements and cancellations, along with other updates intended to provide our motorsports community with the most current and accurate information available regarding our competition programs, and encourages everyone to follow local, state and federal rules and recommendations designed to address the impacts of Covid-19.
The health, safety and welfare of our riders and their families remains paramount, and we will keep our race community apprised of all further developments.
More, from MotoAmerica:
Federal Economic Aid Available
MotoAmerica would like to thank the GNCC, Carrie Coombs and the MIC for providing the research for the information shared below. We hope it is of service to our teams in navigating these very rough financial waters.
For the MIC infographic summary of aid available please click here:
https://mic.org/Downloads/COVID/EconomicAssistanceResources.pdf
The following options may provide you with aid while we work towards the start of the season.
Emergency Economic Injury Disaster Loans (EIDL): Pro athletes and businesses may be eligible for up to $2 million in loans, as well as a $10,000 1-time cash grant. The application process is easy and available online. You will need your SSN or EIN and bank account and routing numbers. You will know if you are approved for the $10,000 grant within 3 days and the money will be directly wired to your account. https://covid19relief.sba.gov/#/
Paycheck Protection Program (PPP): If you have employees and continue to pay them during the crisis, you may be eligible for payroll protection. This program pays 2.5 times your monthly payroll costs and is 100% forgivable, so long as you don’t reduce your payroll by more than 25%. Starting April 10th, independent contractors and self-employed individuals (pro athletes) may also apply for loans of up to $100,000 to cover the loss of income and net earnings from self-employment during this time. These loans are forgivable as well.
This program is administered through the Small Business Association (SBA) but you must apply through your local bank. Applications close June 30th and there is a funding cap, so apply now. The 6-digit NAICS Code for independent professional racers is 711219
Tax Credits: Several tax credit programs are available and should be exercised if applicable. You will need to consult with your tax advisor to take advantage of these tax credits:
a. Payroll tax credit
b. Social Security tax deferment
c. Net operating loss 5-year carry back with full offset
d. Increase in business interest expense deductions
e. Immediate recovery of corporate alternative minimum tax credits
f. Immediate write-off for facility improvement costs
We hope you are all staying safe and healthy and please do not hesitate to reach out with any questions regarding our plans to return to racing or ways we can help assist you.
Check www.motoamerica.com for news and updates.
Entry, registration, technical bulletins can be found at www.motoamericaregistration.com
Please contact [email protected] with any questions