Updates and Resources for Business

On May 10, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local Fiscal Recovery (CSLFR) Funds established by the American Rescue Plan Act of 2021, to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments.

Treasury also released details on how these funds can be used to respond to acute pandemic response needs, fill revenue shortfalls among these governments, and support the communities and populations hardest-hit by the COVID-19 crisis.

Eligible state, territorial, metropolitan city, county, and Tribal governments may now request their allocation of CSLFR Funds through the Treasury Submission Portal.

These funds allow for a broad range of uses to address the disproportionate public health and economic impacts of the crisis on the hardest-hit communities, populations, and households.

A partial list of potential uses:

• Small Business Assistance: To support small businesses, helping them to address financial challenges caused by the pandemic and to make investments in COVID-19 prevention and mitigation tactics, as well as to provide technical assistance.
• Education Assistance: To address educational disparities through new or expanded early learning services, providing additional resources to high-poverty school districts, and offering educational services like tutoring or afterschool programs.
• Tourism, travel, and hospitality sector Assistance: To support industries that were particularly hard-hit by the COVID-19 emergency and are just now beginning to mend are eligible for support. Similarly impacted sectors within a local area are also eligible for support.

Equipped with this information, NAMM members are urged to engage with State and Local agencies as decisions are being made to allocate these and other resources.

The Small Business Administration (SBA) re-opened the Shuttered Venue Operators Grant (SVOG) portal on Saturday, April 24. The SBA has released new guidance detailing the application requirements including forms and required supporting documentation. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

All information is posted on the Shuttered Venue Operators Grant web portal, which is the best source of information about the application process. 

• Don’t Delay: Applicants who have not yet registered for an SVOG account should do so as soon as possible. All may apply on the first day of the portal re-opening. Once the portal opens, applicants can submit an application at any time, regardless of whether an organization is within one of the two priority periods. Within priority periods, SBA will process qualifying applications in the order received.
• Significant Changes: The revised revenue chart included in the new application form is among the most substantial changes to the guidance. The SBA has specified that maximum grants amounts will be calculated based on 45% of calendar 2019 earned revenues (FAQ, page 31, question 11). The SBA has clarified that all applicants must demonstrate at least a 25% gross earned revenue decline in at least one quarter of 2020, compared to the same quarter in 2019 (Application, Question 4)
• Questions: The SBA is referring applicants to their Customer Service Center to address technical questions about the application process: (800) 659-2955 or SVOGrant@sba.gov. More substantive questions should be addressed to the SBA resource partners. Find local SBA resource partners. The Shuttered Venue Operators Grants web page is updated regularly and is your best source of guidance.

The $16.25 billion SVOG program, which provides grants to shuttered venues affected by the COVID-19 pandemic is targeted to certain types of entities in the arts and entertainment industry: live performance venues, museums, and movie theaters. These lines of business are among those most significantly affected by COVID-19 and are projected to be among the most delayed to recover to pre-pandemic levels of economic activity.

The March 19 report by the Congressional Research Service, which provides briefing materials for the U.S. Congress, examines the SVOG’s implementation, eligibility requirements, grant amounts, legal requirements, allowable use of proceeds, and recordkeeping requirements.  Interested parties are urged to contact their lending institution for more specific details.

• SVOG SBA Eligibility Summary (4 min video) 
• SBA Shuttered Venue Operator Grant Webinar 
• SBA Shuttered Venue Operators Grant Resource Site

NAMM’s policy team discussed an overview of the provisions and potential impact of the American Rescue Plan 2021. Topics covered: support for businesses, school-reopening relief, housing and nutrition assistance, payments to cities, counties and states, unemployment insurance, vaccine distribution and more.

Resources:

COV-AID, Live Events Helping Distribute The Vaccine

The live events industry has come together to offer its resources and expertise to assist in safe, effective and expeditious vaccine distribution across the U.S.A.. Learn more: COV-AID Resource Guide 

COV-Aid Town Hall on March 8

The COV-Aid movement for the live events industry to support vaccination efforts began weeks ago through numerous organizations. To help spur interest and awareness of ways to get involved, the CMA Country Music Association hosted a Town Hall featuring Michael Strickland, Brad Nelms (We Make Events), and Dayna Frank (NIVA) to provide an overview of COV-Aid and pinpoint ways for the industry to get involved.

Watch on YouTube

The Federal Reserve has confirmed that it will extend Paycheck Protection Program Liquidity Facility (PPPLF), the facility bolstering the Paycheck Protection Program. The Federal Reserve, with support from the Treasury Department, has twice extended the life of the PPPLF. With the newest extension, the program will remain open until June 30. 

Small Business Administration PPP Site