The NBA is set to borrow $175 million in the wake of the ongoing nationwide recession, according to a report.

The presumption is that the teams will use the money to cover operating losses.

The league was not actively looking to borrow, but JPMorgan and Bank of America came to the league several weeks ago to say there was an opportunity to do so.

The NBA polled 15 teams and agreed there was a need to go forward with the plan.

The report stated the money will supplement an existing $1.7 billion league-wide credit facility that uses the NBA's media contracts as collateral to secure loans for the clubs.

The deal comes with interest rates up to 8.27 percent.

Each of the 15 teams can borrow a maximum of $11.66 million from the debt proceeds, according to the Journal.

"In this economic environment, it's tremendous that the league can place such a facility," Alex Martins, chief operating officer of the Orlando Magic, told the magazine.

"It certainly helps us bridge the time period between now and when we move into our new events center in 2010. We've been operating at a $15 (million) to $20 million (annual) loss over the past half-dozen years, so it helps us."

Aside from the Magic, the Sacramento Kings could be among the teams borrowing money. Earlier this month, reports surfaced that the Kings could lose as much as $25 million this season.