Help Is On The Way For US Music Venues As Congress Finally Helps Out
After months of negotiations, Congress finally agreed to a trillion dollar stimulus package that also included $15 billion for distressed music venues. The Save Our Stages act will provide relief for venues small and large that have been closed since March due to the pandemic. Although the bill has not yet been officially completed and passed by Congress, that’s expected to come in the next couple of weeks.
The bill is designed to offer grants to small venues, movie theaters and institutions to cover six months of payroll and operating expenses, including rent, utilities and maintenance. Applicants must have lost at least 25% of their business during the pandemic to qualify, but special priority will be given to venues that have lost 90% of revenue or more by allowing them to apply during the first two weeks after the bill is signed into law.
This bill is aimed at helping small institutions, with $2 billion earmarked to go to venues employing 50 people or less. Grants are capped at $10 million, but if that sounds like a deal aimed at fat cat institutions, publicly traded and other large businesses are not eligible. The grants are based on a formula that includes up to 47% of a venue’s revenue for 2019.
Since the bill is expected to cover expenses for the first 6 months of 2021, it’s possible that venues may still remain closed when funds run out, since it’s understood they will be the last businesses permitted to open. However, it’s expected that an additional stimulus bill will be pass later in the year that should cover the gap.
One area of contention over the bill was that many nonprofit arts groups have continued to receive private donations during the pandemic that kept their losses below 70 percent. The new legislation sets aside $3 billion to help meet the needs of these nonprofits, but they must wait 28 days before applying after the bill is signed into law.
For many US music venues this unfortunately will be too little too late. To others it will be the lifeline needed to keep them going.
