Indy-based USA Gymnastics gets federal coronavirus relief loan

INDIANAPOLIS (WISH) — USA Gymnastics got a Paycheck Protection Program loan despite the organization fighting public scrutiny, lawsuits and bankruptcy since 2018.

The loans from the federal government were meant to help small businesses cover expenses and hold on to employees through the pandemic.

Indianapolis-based USA Gymnastics (USAG) got a Paycheck Protection Program loan totaling from $350,000 to $1 million. The Small Business Administration did not tell us how much each organization got, but breaks them into tiers.

The USAG came under fire after accusations of sexual assault by a team doctor, Larry Nassar, and accusations the USAG knew about it and covered it up. Nassar is facing what amounts to a life sentence, and former USAG CEO and Fishers resident Steve Penny is facing charges for tampering with evidence in the case. USAG filed for bankruptcy in late 2018.

Attorney John Manly represented nearly 200 women — including Simone Biles, Aly Raisman, Jordyn Wieber, Jamie Dantzscher and Rachael Denhollander, who was the first to speak publicly about the doctor — who say Nassar assaulted them.

Manly sent I-Team 8 this statement: “As small businesses around the country fought to get Paycheck Protection Loans to survive Covid-19, bankrupt USA Gymnastics sued to obtain federal funding to continue paying its staff which is working against the interests of sexual abuse victims. They have now joined the U.S. Roman Catholic Church and its affiliates in obtaining funding from this program. Giving taxpayer dollars to organizations who have engaged in the systemic protection of child rapists is morally bankrupt.”

Dozens of Nassar’s survivors demanded last month that the U.S. Department of Justice release information on their investigation into USAG.

I-Team 8 reached out to the Small Business Administration about the loan. We did not hear back from them after giving them more than a week to respond.

USA Gymnastics responded several hours after this story originally aired. They gave us the following statement:

As a small, nonprofit organization, USA Gymnastics is grateful that funding received through the Small Business Administration’s Paycheck Protection Program will allow our staff, the vast majority of whom are based in Indianapolis, to continue their important work serving the needs of gymnasts across the country and providing essential education, programming and safety resources.

USA Gymnastics