Report: Government grants U.S. Soccer loan due to COVID-19 crisis

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The United States Soccer Federation has succeeded with an application for a loan through the government's Payroll Protection Program (PPP), sources told ESPN's Jeff Carlisle.

The PPP is part of the Coronavirus Aid, Relief and Economic Security Act and is designed to provide financial relief for small businesses with fewer than 500 employees. Loans acquired through the program will be forgiven if employees stay on the payroll for eight weeks and the funds are only used to cover wages, rent, mortgage interest, and utilities.

The U.S. Adult Soccer Association - which runs the adult amateur game in the United States - has also applied for a PPP loan, Carlisle reports.

The coronavirus crisis has prompted a period of great upheaval for U.S. Soccer, with the federation announcing last week it was laying off and furloughing staff. If those employees aren't rehired, U.S. Soccer will have to pay back its PPP loan with an interest rate of 1%.

Many media outlets claim chief administrative officer Brian Remedi and Tonya Wallach, who served as chief talent and inclusion officer starting in 2018, were among those whom U.S. Soccer fired. But there has been no official word from the organization on the pair's employment status.

Additionally, the U.S. Soccer Development Academy, which was launched in 2007, ceased operations last Wednesday due to the financial strain "the extraordinary and unanticipated circumstances around the COVID-19 pandemic" were causing. On the same day, Major League Soccer announced it will launch an elite youth program and grant entry to teams that participated in U.S. Soccer's now-defunct academy.

U.S. Soccer was already bracing for a two-and-a-half-year period with cash reserves of just $40 million, according to Carlisle. However, it's now facing a worse predicament due to the postponement and cancelation of matches during the global emergency.

Things will become more desperate for U.S. Soccer if it loses its equal-pay lawsuit with members of the United States women's national team, which would result in the governing body paying a settlement that may reach six figures.