Friends,
Below is a brilliant e-blast from our friends at NITO.
We owe a big thank you to Frank Riley, Stormy Shepherd and Lore Ledding for all the hard work they put into creating this amazing one stop informational piece.
I believe you can answer most all of your questions with this document regardless of the area you need assistance in.
Frank confesses it was Stormy and Lore that created this.
Thank you so much for this most informative tool.
I also want to give Ms. Stephanie Freed and the great people at ExtendPUA.org for their tireless efforts that help so many of us.
Keep it up!
I assure you that no one has stopped pushing for broader relief.
That includes RESTART, more PUA and other such initiatives.
I talk to many of you and I am aware of the multiple needs still out there.
We all understand that additional PPP and PUA only moves us to March.
I will not stop until we all have broad relief, I promise.
I have made some wonderful political connections and headway at a high level in the last 4 days.
We will push ahead until everyone in this amazing industry has relief and a path to being able to operate successfully in 2021.
Thank you all for everything you do, it matters.
Do not lose hope!
Onward and Upward!
Happy New Year and here is to a great 2021.
Michael T. Strickland
PLEASE SCROLL DOWN FOR E BLAST
Dear NITO Members, We hope that each of you are safe, healthy and enjoying the holidays. Now that the COVID-19 Relief Bill is passed and signed, we will do our best to continue to update our membership. We strongly urge you to contact your accountant or business manager to advise you of your options. Please be vigilant in watching for application dates. Below you will find a brief overview of Save Our Stages (SOS), Pandemic Unemployment Assistance (PUA), and the Payroll Protection Program (PPP). These are only brief summaries, but links to the full language from the bill are included. SAVE OUR STAGES (SOS) ClickHERE to see language from the bill: What types of entities are eligible?Live performance venue operators and promotersPerforming arts organizationsTheatrical producersTalent representativesMotion picture theatre operatorsNon-profit museumsWhat are the broad eligibility requirements?The business entity must have been “fully operational” on February 29, 2020.The business entity must be able to demonstrate 25% gross earned revenue loss in any one calendar quarter of 2020 compared with the same calendar quarter of 2019.The business entity must be operating or intending to resume operations in the future.What is the definition of a Talent Representative?Not less than 70% of business operations is engaged in representing or managing artist and entertainersBooks or represents musicians, comedians, actors or similar performing artists primarily at live events in venues or at festivalsThe performers represented are paid in an amount that is based on the number of tickets sold or a similar basisOperates for profit, or a nonprofit organization or government-owned or a corporation, limited liability company, or partnership or operated as a sole proprietorshipWhat are disqualifying characteristics?The business entity must NOT be majority-owned or controlled by a publicly traded corporation.The business entity must NOT have received more than 10 percent of gross revenue from federal funding during 2019 (FEMA disaster assistance excluded).The business entity must NOT have all three of the following characteristics:Owning or operating venues, museums, motion picture theatres, or talent agencies in more than one country.Owning or operating venues, museums, motion picture theatres, or talent agencies in more than ten states.Employing more than 500 *FTEs as of February 29, 2020 (30+hr./wk. = 1 FTE and 10-30 hrs./wk. =.5 FTE). *FTE = Full Time Employees.The business entity must NOT offer performances, services, or goods of an excessive sexual nature.What is the amount of the SOS grant?Initial Grant: The amount equal to 45% of 2019 gross earned revenue.NOTE: Entities that began operations after January 1, 2019 will be eligible for the average monthly gross earned revenue for each full month during which the eligible person or entity was in operation during 2019 multiplied by 6.Supplemental Grant: If funds remain after initial grants are distributed, a second grant equal to 50% of the initial grant amount may be awarded to entities still experiencing 70% earned revenue loss when comparing the first quarter of 2021 with the first quarter of 2019. The total amount of the initial and supplemental grants awarded may not exceed $10 million.Who will be first to apply for SOS grants?The Small Business Administration must write and implement regulations to administer the SOS program. After that is completed, it will begin accepting initial grant applications. Applications for supplemental grants will likely not be accepted until on or after April 1, 2021.Days 1-14: The only applications accepted will be from entities whose total revenue for April 1, 2020 through Dec. 31, 2020 is 10% or less of their 2019 gross revenue for the same period.Days 15-28: The only applications accepted will be from entities whose total revenue for April 1, 2020 through Dec. 31, 2020 is 30% or less of their 2019 gross revenue for the same period.Day 29 and on: Any eligible entity may apply for an initial grant.NOTE: No more than 80% of the total allocation may be awarded in the first 28 days.NOTE: $2 billion (of the $15 billion program) is reserved for entities with fewer than 50 FTEs.What are the allowable expenses?Initial grants may be used for allowable expenses incurred between March 1, 2020 and December 31, 2021. If a supplemental grant is received, those funds may be used for allowable expenses incurred before June 30, 2022.Allowable expenses include payroll costs as defined in 7(a)(36)(A) of the Business Act (15U.S.C. 636(a)3), rent payments, mortgage payments, utilities, debt payments for debt incurred in the ordinary course of business, PPE, independent contractor payments up to $100,000/year, maintenance expenses, administrative costs including fees and licensing costs, state and local taxes and fees, operating leases, insurance, and advertising, travel and capital expenditures for live performances.Prohibited expenses include the purchase of real estate, loan payments on loans originated after February 15, 2020, investment or re-loan of funds, and political contributions.Other ProvisionsThe entity must certify that the uncertainty of current economic conditions makes necessary the grant to support the entity’s ongoing operations.An entity is ineligible for an SOS grant if you receive a PPP loan on or after the date of enactment of the SOS Act.For the purposes of measuring revenue loss, CARES Act funding should not be counted toward gross revenue. SBA may use alternate methods to determine loss of seasonal employers.Accrual accounting should be used to determine revenue.Unlike PPP, this program does not apply PPP affiliation rules. However, no more than five affiliated entities may receive an SOS grant. Each affiliated entity – including any parent company – must meet all eligibility requirements.Grant use will be reviewed by the SBA to determine fraud, noncompliance, or misspent funds. Grant recipients will need to retain 4 years of employment record and 3 years of other records following receipt of the grant. PANDEMIC UNEMPLOYMENT ASSISTANCE (PUA) ClickHERE and start on page 1924. (The info below is summarized from H.R. 133 Division By Division Summary and ExtendPUA.org). Basics included in the Extension of Federal Pandemic Unemployment Compensation 11 added weeks for PUA & PEUC claims and an extension of the expiration date. (There will be a “soft cut off” of unemployment benefits. On March 14th the PUA and PEUC programs will “end,” not allowing any new claims. BUT if you still have weeks left you can continue to claim until April 4th. On April 4th both programs will end regardless of any remaining weeks).$300 FPUC added to all claims for 11 weeks (no retroactivity). The $300 will be added onto all PUA and UI claims from December 26, 2020 through March 14, 2021.$100 added for people who would have been eligible for a decent sized PUA benefit, but only qualified for a small UI benefit instead (mixed income earners fix).For mixed income earners: The bill provides a federally funded $100 per week additional benefit to individuals who have at least $5,000 a year in self-employment income (1099) but are disqualified from receiving Pandemic Unemployment Assistance because they are eligible for regular state unemployment benefits. This mixed-earner supplemental benefit would be added to the FPUC and would terminate along with it on March 14, 2021. This provision would be effective for future unemployment benefit payments after a state chooses to make an agreement with the Department of Labor.$600 “stimulus” checks.15% increase for SNAP (food assistance). PAYROLL PROTECTION PROGRAM (PPP) Second Draw clickHERE to review language in the relief bill (pg. 2042). Click HERE to view the SBA program guidelines once they become available. The information below is taken from H.R. 133 Division-By-Division Summary and includes additional information not listed here. $284 billion set aside for first and second forgivable PPP loans. Section 303 requires the SBA Administrator to establish regulations to carry out this title no later than 10 days after enactment of this title. Paycheck Protection Program Second Draw Loans Creates a second loan from the Paycheck Protection Program, called a “PPP second draw” loan for smaller and harder-hit businesses, with a maximum amount of $2 million. Eligibility. In order to receive a Paycheck Protection Program loan under this section, eligible entities must:Employ not more than 300 employees;Have used or will use the full amount of their first PPP; andDemonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter. Provides applicable timelines for businesses that were not in operation in Q1, Q2, and Q3, and Q4 of 2019. Applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020.Eligible entities must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives.Ineligible entities include: entities listed in 13 C.F.R. 120.110 and subsequent regulations except for entities from that regulation which have otherwise been made eligible by statute or guidance, and except for nonprofits and religious organizations; entities involved in political and lobbying activities including engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public document, entities affiliated with entities in the People’s Republic of China; registrants under the Foreign Agents Registration Act; and entities that receive a grant under the Shuttered Venue Operator Grant program. Loan Terms In general, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year. No loan can be greater than $2 million.New entities may receive loans of up to 2.5X the sum of average monthly payroll costs.Businesses with multiple locations that are eligible entities under the initial PPP requirements may employ not more than 300 employees per physical location.An eligible entity may only receive one PPP second draw loan. Additional Eligible Expenses Makes the following expenses allowable and forgivable uses for Paycheck Protection Program funds:Covered operations expenditures. Payment for any software, cloud computing, and other human resources and accounting needs.Covered property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.Covered supplier costs. Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.Covered worker protection expenditure. Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.Allows loans made under PPP before, on, or after the enactment of this act to be eligible to utilize the expanded forgivable expenses except for borrowers who have already had their loans forgiven. Selection of Covered Period for Forgiveness Allows the borrower to elect a covered period ending at the point of the borrower’s choosing between 8 and 24 weeks after origination. We will continue to make you aware of new information as it becomes available and post the updates on our website www.nitolive.org. The information provided herein is not intended to constitute legal or financial advice; instead, all information, content, and materials are for general informational purposes only. The information may not constitute the most up-to-date legal, financial or other information and any links to other third-party websites are only for the convenience of the reader, user or browser. Again, we recommend that you consult with your accountant or business manager. Thank you!! Team NITO |
