New Data Revealed: Can Federal Aid Save Our Stages?

In December 27, 2020, the United States Congress signed into law a $900 billion second federal COVID stimulus package that included emergency relief for independent entertainment venues shuttered by the coronavirus pandemic. Since then, venue operators throughout the country have been waiting eagerly for instructions on how to apply for these grants.

The federal government's Small Business Administration announced on March 18 that it will open applications for the Shuttered Venue Operators Grant (SVOG) on April 8, 2021. SVOG, formerly known as the Save Our Stages or SOS Act, guarantees up to $16.25 billion in federal stimulus to independent concert venues across the country. The SOS Act was renamed the Shuttered Venue Operators Grant (SVOG) when it was signed into law. 

The not-for-profit National Independent Venue Association (NIVA) was the primary catalyst that lobbied for aid for the struggling venues. NIVA issued a statement immediately following the announcement of the SVOG application date.

"We realize this is an enormous undertaking for the SBA and we appreciate everything the agency is doing to ensure this program is administered as Congress intended as expeditiously as possible. The opening can’t come soon enough. The fate of our industry’s survival is dependent on it. To say we have been anxiously awaiting the day when we can apply for this emergency relief is an understatement."

Formed at the onset of the COVID-19 shutdown, NIVA represents more than 3,000 venues, promoters, and festivals in all 50 states and Washington, D.C.

Many musicians sought and found places to play during the pandemic,
including Cancion Franklin at the Juke Bar on March 16

Who Gets the Financial Aid?

NIVA's original Save Our Stages campaign was intended to benefit concert venues. Legislators expanded the scope of the bill to include theaters, museums, zoos and aquariums. According to "Federal Aid for Closed Cultural Venues Will Be a Race for Cash," an article published in the New York Times on February 4, the Small Business Administration estimates that at least 27,000 businesses could qualify for the grants. This includes approximately 2,000 movie theaters, 3,000 talent agents and promoters, 7,000 museums and zoos, and more than 6,000 music clubs and theater operators.

This will be the first time ever that the Small Business Administration runs a major grant program. Tens of thousands of applications from eligible music clubs, theaters, museums and other spaces across the United States may overwhelm the federal agency's Office of Disaster Assistance. The dispersion of the federal money may take several months.

According to the Times article, most recipients are eligible to collect 45 percent of their 2019 revenue, up to $10 million. For the first 14 days, grants will be available only to those with a 90 percent or greater revenue loss between April and December 2020. After that, applicants with a loss of 70 percent or more will have a 14-day priority window. Those two groups alone could deplete the program’s funding before other applicants — those with losses of at least 25 percent — can have their turn. 

To qualify for the SVOG as a live-events venue, a space must have a lighting rig and mixing equipment, charge for most tickets, and employ workers like booking agents, sound engineers, and a box-office manager.

Beginning with the ban on indoor dining, Baby Brasa moved its operations into a giant roadside cabana;
Duefunk performed at Baby Brasa on March 17

Venue operators also can apply for the Paycheck Protection Plan. The program reopened earlier in 2021, allowing hard hit businesses to seek a second forgivable loan. Initially, eligible applicants could not apply for both Payroll Protection Plan (PPP2) and the SVOG. Businesses had to choose between seeking a SVOG or PPP2 relief. Senate Majority Leader Chuck Schumer proposed an amendment to the SVOG provisions and, on March 11, President Joe Biden passed the American Rescue bill, enabling eligible entities to apply for PPP2 and also seek a SVOG when the applications become available by the Small Business Administration.

The PPP2 money can help support eligible independent venues and promoters until SVOG funding is distributed. Any amount of PPP2 money taken by a recipient will be reduced from SVOG funds, however. For instance, if a venue is eligible for $100,000 SVOG and the venue owners have taken $25,000 in PPP2 funds, their SVOG cannot exceed $75,000. Applications for the PPP2 are scheduled to close on March 31.

“Now that independent venues and promoters can be eligible for both PPP2 and SVOG, we’re hoping Congress will extend the deadline for applying for PPP2,” say Adam Hartke, NIVA’s Advocay Cochair.

Rue-B has its musicians play inside to diners who are mostly outside in a roadside shed;
the JC Myska Trio performed at Rue-B on March 16 

Local Concert Clubs Need the Financial Aid

Can New York City nightlife stay afloat? China Chalet, the Copacabana, Fat Cat, Kinfolk, the Jazz Standard, the Well and other local venues already closed for lack of financial resources. Several other venues, including Arlene's Grocery and Birdland, announced closing dates due to financial strains but are hanging tough. 

"We have lost more than 90 percent of our income and done zero shows since the shut down in most of our venues," Michael Dorf, founder and CEO of the City Winery chain, told The Manhattan Beat. The flagship City Winery NY will resume concerts on April 2. "We hope that our eligibility for relief is clear and will be handled expeditiously. We desperately need the funds to reopen and put on shows with limited capacity for 2021."

"The SVO will save our room, just like the title says," Paul Rizzo, owner of the Bitter End, told The Manhattan Beat. The Bitter End is scheduled to reopen on April 9 after a year-long shutdown. "I hope the application process is an easy one."

The Red Lion had its musicians play outdoors until indoor dining was permitted;
George Strass performed at the Red Lion on March 16