Biden’s COVID-19 relief package also helps out music venues

An amendment of the recently passed COVID-19 relief package allows venues to apply for multiple government grants. Due to this change in the law, music venues can receive financial support sooner then before. According to the NIVA - the National Independent Venue Association - this will save a number of struggling venues from bankruptcy.

The new COVID-19 relief bill - known as the American Rescue Plan - allows venues to apply for both the Shuttered Venue Operators Grant (SVOG) - a.k.a. the Save Our Stages Act - and the Payroll Protection Plan (PPP2). Before venues could only apply to one of the two. It’s unclear when the SVOG payments will begin, the Small Business Administration hasn't even started the application process yet. But it is already possible to receive funds through the PPP2. This is why the change is particularly good news for venues who are in desperate need of financial help. Dayna Frank, the NIVA Board President stated that:

“This change can save countless venues from bankruptcy, as the immediate PPP2 money will help them hold on until the SVOG funds flow. This entire industry is grateful to President Biden for the relief, the Majority Leader Senator Schumer for spearheading this provision and Senators Cornyn and Klobuchar for championing our cause with the #SaveOurStages Act.”

In part due to pressure from the NIVA, the deadline for PPP2 applications has been moved from 31th of March to the 31th of May. To ensure venues will not receive more then the SVOG guidelines allow, funds received through the PPP2 will be subtracted from future SVOG pay-outs.


Even though the name suggests it's for employees paycheck's, the money a business gets through PPP2 can be used for all sorts of expenses. Including paying rent and utilities, something that has been a major concern for music venues during the pandemic and following lockdown.

 

Source: HypeBot | Journal of Accountancy

13 views