Venues Vie for Aid Amid Congressional Gridlock, Looming Closures - Rolling Stone
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As Venues Vie for Government Financial Relief, Time Is Running Out

Congressional gridlock defines the Covid-19 aid saga. While the industry pushes for the Save Our Stages Act, not every aid bill would help independent venues struggling to stay afloat

A pedestrian walks past Lincoln Hall as the band Beach Bunny prepares for a live show inside of the venue on July 15, 2020 in Chicago, Illinois. The 500 person capacity venue recently started hosting live shows again after being shut down by the coronavirus COVID-19 since mid-March. Guests are not allowed in the venue for the performance but they can purchase tickets to view the show which is streamed online. Revenue from ticket sales is split between the venue and the artists. Bands and concert venues have been scrambling to find creative ways to return to business. Most bands rely on live performances for the majority of their income, through ticket sales and merchandise sales generated at the shows.

Independent venues keep pushing for federal aid to stay afloat as Congress remains gridlocked, though not all bills provide adequate relief.

Scott Olson/Getty Images

With both chambers of Congress back in Washington, D.C., music-industry organizations such as the National Independent Venue Association (NIVA) are continuing their fight to secure federal funding for clubs and venues teetering on the edge of closing.

The political situation remains fairly similar to when the House and Senate left last month without passing a second Covid-19 relief bill. Though with four additional weeks of mounting bills, the stakes for venues have only gotten higher. The loss of independent venues not only threatens a key segment of the live-music ecosystem, but would likely have a ripple effect that rattles other nearby businesses, like restaurants and bars, that thrive in part because of their symbiotic relationship with venues.

“Hundreds of venues have gone under so far,” Audrey Fix Schaefer, the head of communications for several D.C.-area venues and a representative for NIVA, tells Rolling Stone. “I think there are a lot of others that have been just holding on, totally white knuckle, in hopes of this funding to come through. And they keep waiting and waiting, but there comes a time when that wait is going to stop.”

The two bills that will meet the demands of the live-music industry remain the Save Our Stages Act and the Restart Act. Save Our Stages, introduced by Republican Sen. John Cornyn of Texas and Democrat Amy Klobuchar of Minnesota, is tailored specifically to independent venue operators, promoters, and talent representatives. It includes $10 billion in grant funding and does not come with some of the restrictive provisions in the CARES Act passed in March that made Paycheck Protection Program loans for small businesses financially unfeasible for independent venues.

A key tenet of those PPP loans was forgiveness if businesses spent 75 percent on payroll; but for shuttered venues, there are few to no employees, and thus no payroll to cover. Yet venues, even when closed, remain stuck with an array of huge costs, including mortgage payments, utilities, and insurance. With the Save Our Stages Act, venues would be able to put federal funding toward those costs to stay afloat until it’s safe for concerts to happen again.

“Small venues were some of the first to close their doors, and I know the prospect of reopening is becoming even more difficult as this pandemic continues to grip the country,” Klobuchar tells Rolling Stone. “But we can’t let the music die. Save Our Stages has growing bipartisan support, and Senator Cornyn and I continue to work with colleagues on both sides of the aisle to ensure aid for small venues is included in any pandemic relief package.”

“My hope is that we’ll come together and pass one last bill at least before the election,” Cornyn said during a Facebook live session Thursday about the bill with Texas musician Josh Abbott. “We’re only 47 days out, but it will include the Save Our Stages Act. Again, we need to extend the PPP Program; the president said he would also like to have direct payments, like we did before, to individuals, and re-up some of the unemployment benefits, and we can’t do that unless we pass another bill.”

Meanwhile, the Restart Act, which was introduced in both the House and the Senate, isn’t specifically geared toward the music industry, but it broadly focuses on businesses — like venues — that have high overhead and no revenue during the pandemic. And while it is a PPP bill, it doesn’t dictate the percentage that has to go to payroll and offers up to 90 percent forgiveness on loans to companies with high revenue loss.

Not all acts are considered equal for venues, though. PPP provisions contained in bills like the HEROES Act (which the House has already passed), the Senate Democrats’ P4 Act, and Senate Republicans’ HEALS Act are far less helpful. These, too, require most loans to be put toward payroll, as opposed to overhead costs. They also penalize businesses that rely on large numbers of part-time employees, come with restrictions that make loan forgiveness difficult, and do not provide the long-term support venues need, as many claim they cannot open at full capacity until there’s a vaccine. Additionally, a bill put forward by the bipartisan Problem Solvers caucus in the House — which President Donald Trump expressed some light support for on Thursday — contains no PPP provisions that would be beneficial to venues.

While congressional gridlock has been the hallmark of the Covid-relief saga, Save Our Stages Act has drawn significant bipartisan support, garnering 42 co-sponsors from both sides of the aisle in the Senate (including 12 Republicans), and 120 in the House. But it’s unlikely, Schaefer says, that SOS would be passed as a standalone bill. The hope remains, should the deadlock break on some sort of relief package, that provisions from Save Our Stages or Restart would be folded into the final bill.

In the meantime, NIVA organizers have been directing fans who want to support local venues to, where they can send a letter to their congresspeople expressing support for the bill. (Schaefer says they’ve already had nearly 2 million emails sent to Congress, which is astronomically more than the 50,000 or so NIVA’s lobbyist said would mark a successful campaign.) Fans are also encouraged to buy gift cards, merch, or even declining to take a refund on shows that were canceled because of the pandemic. NIVA has set up an emergency fund on its website that’s helping venues stay afloat as they continue to await federal assistance.

Without federal assistance, though, the coming months could be devastating for independent venues nationwide. Schaefer points to Birdland, the legendary jazz club on 42nd Street in New York City that celebrated its 70th anniversary last December.

“I was talking to the manager, and he said if something doesn’t come through in the next month or so, they’re just not going to continue,” Schaefer says. “The owner is in his mid-70s, and this is his retirement. For him to pay the rent, on that street, for an empty building, to hold on for hope that we don’t know will come — he just can’t do it anymore. There’s no amount of history, of being legendary, beloved, and iconic that will save you from the future. People naturally assume, ‘Oh, Birdland, how could that go under?’ Well, do the math.”

In This Article: covid-19, NIVA


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