Independent Entertainment Venues Gain Support from Legislators

Richie Cannata's Monday Night Jam has returned to the Bitter End; the music venue reopened in April

Members of Congress introduced legislation on Sept. 29 to allow more time for independent entertainment venue operators to spend federal  COVID relief grants. The proposed Save Our Stages Extension Act would extend the timeline for entities that were shuttered due to the pandemic to spend the $16 billion in emergency relief. The legislators hope to have the bill ready for President Joe Biden's signature before the end of 2021.

Senators John Cornyn (R-TX) and Amy Klobuchar (D-MN) introduced in the U.S. Senate the SOS Extension Act, S. 2889, To amend the Consolidated Appropriations Act, 2021 to address the timing for the use of funds with respect to grants made to shuttered venue operators. The Senate referred the proposal to the Committee on Small Business and Entrepreneurship. Representatives Peter Welch (D-VT) and Rodney Davis (R-IL) introduced similar legislation, H.R. 5429, in the U.S. House of Representatives, which referred the initiative to the Committee on Small Business.

The Mark McKay Band at the 11th St. Bar on September 23; after almost a year and a half, the bar reopened its back room for live music

Chris Campion at the 11th St, Bar on September 30; he has resumed his monthly residency on that last Thursday of each month

The bipartisan bills would extend the timeline for using Small Business Administration (SBA) Shuttered Venue Operators Grant (SVOG) funds. The bills extend the date by which approved expenses must be incurred to March 11, 2023, instead of the original statute which required costs to be incurred by Dec. 31, 2021. The extension would not call for additional money to the grant fund.

Congress signed into law the Shuttered Venue Operators Grants, originally known as the Save Our Stages Act, as part of the omnibus funding bill on Dec. 27, 2020. The advocates for the extension claim that, due to months-long delays from the SBA in launching this program and disbursing the grants, many venue owners are struggling to use their funding by the stipulated deadline of Dec. 31, 2021. This deadline reportedly is forcing some venue operators, who were not identified, to spend millions in only three months while their venues remain shuttered due to COVID restrictions. If the deadline is not extended, venue operators could have to return billions of their grant dollars to the SBA.

The Record Players at Otto's Shrunken Head on September 30; the venue recently reopened its back room for live music but the scheduling is not yet as robust as in pre-pandemic times (photograph by Seth Okrend)

Crazy Mary at Otto's Shrunken Head on September 30 (photograph by Seth Okrend)

“Struggling entertainment venues waited months for SBA to distribute relief after the passage of Save Our Stages, and now these small businesses, many of which are still shuttered, may lose the grant funds they need to survive the pandemic,” Sen. Cornyn said. “This legislation would allow these independent music venues, theatres, and dance halls more time to spend these funds wisely instead of forcing them into a ‘use it or lose it’ scenario.”

“Last year, we refused to sit back and let the music die, which is why we passed the bipartisan Save Our Stages Act,” said Sen. Klobuchar. “As we continue to recover from the pandemic, I’m proud to introduce this legislation to extend the timeline for venues to use this relief funding, helping to ensure they’ll be able to make ends meet and keep serving our communities for generations to come.”

“Many music venues and theaters have waited a long time for the SBA to distribute grant funds authorized by the Save Our Stages Act, but bureaucratic delays have slowed the process of getting funds out the door,” said Rep. Davis. “With the grant program expiring in less than three months and the pandemic still negatively impacting their industry, it’s important that we extend the program’s deadline so venues can fully utilize the grant funding.”

 “We’re grateful that once again we have bipartisan support as we navigate as gathering places in the throes of this challenging time,” said Dayna Frank, President of the Board for the National Independent Venue Association (NIVA), which started the lobby for federal assistance at the beginning of the pandemic in the spring of 2020. “These grants truly have saved our businesses, and with added time, we’ll be in the best position to maximize the use of taxpayers’ funds responsibly, ensuring our ability to thrive, hire employees, and be the economic engines of our communities.”

Exit 99 at Otto's Shrunken Head on September 30

Cornyn and Klobuchar were authors of the original legislation, which received widespread support in Congress and in the live entertainment industry. The original Save Our Stages Act narrowly defined eligibility to ensure that only small shuttered and at-risk venues qualified for federal grant funding. It directed the SBA to make grants to eligible venues equal to the lesser of either 45 percent of operation costs from calendar year 2019 or $10 million. The act permitted recipients to use the grant for essential expenses incurred during the COVID pandemic, including rent, utilities, mortgage obligations, PPE procurement, payments to contractors, regular maintenance, administrative costs, state and local taxes, operating leases, and capital expenditures related to meeting state, local, or federal social distancing guidelines

The legislators drafted the bill due to the six-month-plus delay between the passage into law of the $16 billion “Save Our Stages” COVID relief act in December and the independent venues actually receiving the SVOG funds. After much controversy, the SBA overhauled the management of the program and began dispersing funds six months later, in June 2021. Since then, the Delta variant has seen that cancellations of concerts and tours are impacting negatively the full reopening of venues. According to NIVA, SVOG stakeholders seek this extension for several reasons.

1. Most envisioned that it would take 45-60 days for the SVOG relief to start flowing once the bill was signed into law on December 27, 2020, but nine months after the law passed and four months after submitting applications, many venues are still awaiting funding. As enacted, initial grant awards must be used for costs incurred by December 31, 2021. However, many eligible small business owners were not in a position to incur normal costs until they were certain their application was approved. They have been delayed in efforts to rehire employees; repay rent, mortgages, and utilities; or conduct upgrades to HVAC systems to mitigate the spread of COVID until they received the emergency relief. These small businesses need more time to properly utilize their grants as the statute dictates.
   
   
2. The Delta Variant is already adding significant roadblocks to our industries’ revival, as music tours and theatrical engagements are canceling, ticket buyers are asking for refunds or not showing up, and ticket sales have stalled, even from early July numbers. For example, major tours, including Garth Brooks, BTS, Stevie Nicks, Florida Georgia Line, and Neil Young, have recently been canceled. We are seeing entire tours, festivals, and even day-of cancellations as performers and their crews test positive for COVID and navigate safety precautions. With reopening uncertain as a result of the continuing pandemic and COVID-19 variants along with unknown clientele comfort levels, changing guidelines, and varying restrictions at state and local levels, our industry is in need of a longer timeframe for use of these funds.

According to NIVA, many eligible small business owners were not in a position to incur normal costs until they were certain their application was approved. They have been delayed in efforts to rehire employees; repay rent, mortgages, and utilities; or conduct upgrades to HVAC systems to mitigate the spread of COVID until they received the emergency relief. These small businesses need more time to properly utilize their grants as the statute dictates.

The Save Our Stages Extension Act legislation is supported by the Association of Performing Arts Professionals, Broadway Across America, Coalition of Performing Arts Centers, League of American Orchestras, League of Historic American Theatres, National Association of Theater Owners, National Independent Talent Organization, National Independent Venue Association, Performing Arts Alliance, Performing Arts Managers and Agents Coalition, Preservation Hall Foundation, The Broadway League, and Theatre Communications Group.

Bad Avocado at Otto's Shrunken Head on September 30 (photograph by Seth Okrend)

Rick Eckerle & the Arch Angels at Otto's Shrunken Head on September 30 (photograph by Seth Okrend)

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The Manhattan Beat covers New York City's live music developments as they happen. All photographs are by Everynight Charley Crespo, except when noted otherwise. For a list of Manhattan venues that are presenting live music regularly, swing the desktop cursor to the right and click on the pop-up tab "Where to Find Live Music." For a listing of upcoming concerts for live audiences, visit The Manhattan Beat's October 2021 calendar.