The proposed guidelines would preclude firms like iHeartRadio and Entercom from receiving PPP funds below the Senate’s HEALS Act.
The Recording Academy and the American Association of Self ample Tune (A2IM) are supporting a modern Senate bill that could per chance permit puny firms and folk to qualify for a second loan below the Paycheck Security Program (PPP), while also prohibiting immense radio conglomerates from receiving the abet.
In a joint letter addressed to Sen. Marco Rubio (R-FL) — who sponsored the Continuing Diminutive Enterprise Recovery and Paycheck Security Program Act as chairman of the Senate’s Committee on Diminutive Enterprise and Entrepreneurship — the change organizations voiced their reinforce for the guidelines, which has been integrated into the $1 trillion Senate stimulus equipment identified because the Smartly being, Financial Aid, Liability Security and Colleges (HEALS) Act.
Below the proposed guidelines, no firm with greater than 300 employee all over locations would qualify for forgivable PPP loans. That’s a change from the CARES Act bill, which allowed firms with a few physical locations — like radio stations — to procure forgivable PPP loans for particular person retail outlets, as lengthy as each and each of those retail outlets employed lower than 500 folk.
“On behalf of recording artists and puny self reliant document labels all over the nation, we write to bolster the Continuing Diminutive Enterprise Recovery and Paycheck Security Program Act,” begins the letter, which used to be signed by Recording Academy chief advocacy officer Daryl Friedman and A2IM president and CEO Richard James Burgess. “Most importantly, Paycheck Security Program (PPP) 2nd Diagram loans could per chance be a wanted lifeline to correct puny firms in the song change, and a low cost of the employee cap to 300 staff is sound public policy.”
The CARES Act controversially spread out the PPP program to radio conglomerates including iHeartMedia, Entercom and Townsquare Media, each and each of which have a whole bunch of radio stations all over the U.S. Opponents argued that the a few-advise clause drained funds from a program that used to be designed to succor puny firms, leaving many without wanted reduction.
Within the letter, which used to be sent Monday, the Recording Academy and A2IM applauded Rubio for barring radio conglomerates from qualifying for the loans below the modern guidelines.
“Together, we’re very happy to stare that your proposal does no longer encompass provisions supported by the broadcasting change, and radio broadcasters particularly, to permit radio stations owned by mega conglomerates to qualify if an particular person advise employs fewer than 500 folk,” the letter reads. “PPP funds have proven difficult to stable, and opening up a pot of cash to big firms that have diversified strategy of having access to capital, defeats Congress’ laudable goal of concentrated on abet to firms on the entrance traces in struggling communities.”
Friedman and Burgess blow their non-public horns that below federal copyright regulation, broadcast radio — which brings in an estimated $11 billion in advertising revenue each and each 300 and sixty five days — is excused from paying recording artists and document labels for the public efficiency of sound recordings.
“Within the context of emergency abet, it will probably per chance be primary to glimpse that this unfair medicine below copyright regulation capacity that recording artists and labels feel zero downstream impact from taxpayer funded economic reinforce to broadcasters,” the letter continues.
It adds, “Below the most standard PPP requirements, many puny local broadcasters have already purchased reinforce, and we don’t object to correct puny firms having access to these funds. In step with records launched by the Diminutive Enterprise Administration, over 2,000 radio broadcasters have purchased as grand as $350 million in reinforce. 25 of those firms have over 100 staff. Suffice it to say, the program is already very generous. Nonetheless the 5 excellent radio conglomerates in the nation have over 1,900 stations, are anything but puny, and can aloof no longer qualify for this abet.”
Launched gradual closing month, the Republican-led HEALS Act is one amongst two Congressional COVID-19 reduction packages at the moment below overview. The diversified is the $3 trillion Democrat-led Heroes Act, which used to be handed in the House of Representatives on Would possibly presumably 15.
You would read the fleshy letter below.
Pricey Senator Rubio:
On behalf of recording artists and puny self reliant document labels all over the nation, we write to bolster the Continuing Diminutive Enterprise Recovery and Paycheck Security Program Act. Most importantly, Paycheck Security Program (PPP) 2nd Diagram loans could per chance be a wanted lifeline to correct puny firms in the song change, and a low cost of the employee cap to 300 staff is sound public policy. We also live hopeful that Congress will elaborate sure sides of the PPP so that reduction is more readily accessible to self-employed folk.
The American Association of Self ample Tune (A2IM) represents greater than 700 document labels in 33 states. A2IM contributors are correct puny firms. Of its document mark contributors, greater than 140 invent lower than $1 million a 300 and sixty five days, and several other dozen are sole proprietors.
The Recording Academy represents the voices of performers, songwriters, producers, engineers, and all song specialists. It represents simplest folk and has no firm or corporate contributors. The Academy advocates on behalf of song creators and celebrates artistic excellence via the GRAMMY Awards®—song’s simplest admire-identified accolade and best seemingly fulfillment.
Together, we’re very happy to stare that your proposal does no longer encompass provisions supported by the broadcasting change, and radio broadcasters particularly, to permit radio stations owned by mega conglomerates to qualify if an particular person advise employs fewer than 500 folk. PPP funds have proven difficult to stable, and opening up a pot of cash to big firms that have diversified strategy of having access to capital, defeats Congress’ laudable goal of concentrated on abet to firms on the entrance traces in struggling communities.
As which it is seemingly you’ll know, federal copyright regulation affords special medicine to broadcast radio over all diversified forms of song distribution in that radio stations enact no longer must pay a dime to recording artists and document labels for the public efficiency of sound recordings. The US is the excellent developed nation on this planet where that is the case and, as a result, song structure radio stations invent $11 billion a 300 and sixty five days in advertising revenue without being required to compensate creators, whose product attracts shoppers to radio in the first plot.
Within the context of emergency abet, it will probably per chance be primary to glimpse that this unfair medicine below copyright regulation capacity that recording artists and labels feel zero downstream impact from taxpayer funded economic reinforce to broadcasters. When PPP went to ingesting areas, as an instance, that freed up capital for downstream economic succor, flowing to meals distributors, furniture suppliers, and others.
Below the most standard PPP requirements, many puny local broadcasters have already purchased reinforce, and we don’t object to correct puny firms having access to these funds. In step with records launched by the Diminutive Enterprise Administration, over 2,000 radio broadcasters have purchased as grand as $350 million in reinforce. 25 of those firms have over 100 staff. Suffice it to say, the program is already very generous. Nonetheless the 5 excellent radio conglomerates in the nation have over 1,900 stations, are anything but puny, and can aloof no longer qualify for this abet.
Thanks for your persevered leadership and dedication to puny firms. We admire the principled and responsible plot laid out by your proposal and welcome a possibility to help with its enactment as segment of the next reduction equipment.
Sincerely,
/s/
Dr. Richard James Burgess
President and CEO
American Association of Self ample Tune
/s/
Daryl Friedman
Chief Advocacy Officer
Recording Academy
