Business

Music Venues Scramble for $16 Billion in Federal Pandemic Aid

As has occurred with completely different assist packages run by the corporate — most notably, the Paycheck Safety Program, a $746 billion help effort — the opening of the shuttered venue program was riddled with complexity and confusion.

The corporate posted a 58-page data for candidates late Wednesday evening time, then shortly took it offline. A revised mannequin of the data was posted merely minutes sooner than the portal opened on Thursday. (An firm spokeswoman said the data wanted to be updated to duplicate “some last-minute system modifications.”)

And decrease than two hours sooner than the corporate began accepting functions, its inspector fundamental despatched out an alert warning of “severe issues” with this technique’s waste and fraud controls. The Small Enterprise Administration’s current audit plan “exposes billions of {dollars} to potential misuse of funds,” the inspector fundamental wrote in a report. Then many anxious venue operators had hassle getting their functions in.

Profitable candidates will receive a grant equal to 45 % of their gross earned earnings from 2019, as a lot as $10 million. People who misplaced 90 % of their earnings (as compared with the prior 12 months) after the coronavirus pandemic took preserve might have a 14-day priority window for receiving the cash, adopted by one different 14-day interval for individuals who misplaced 70 % or further. If any funds keep after that, they’ll then go to candidates who had a 25 % product sales loss in at least one quarter of 2020. Venues owned by large firms, like Reside Nation or AEG, mustn’t eligible.

The applying course of is intensive, with detailed questions on venues’ budgets, employees and kit.

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