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SVOG Update 4-23-21 #2

Friends,

There are two categories of entities that may potentially be unfairly excluded from participating in SVOG.

The first group is those entities that are, by the law, as written, excluded yet in need of assistance. There are many entities that are excluded because they do not derive 70% or more of their income from ticket sales. This is a large set of entities ranging from nonprofits that operate the dance troupes, actors theaters, eclectic diverse entertainment markets, music clubs and larger arenas that also provide sporting events and conventions. This is by no means an exhaustive set, but a sample offering. Many people in this category either derive less than 70% from music or are largely supported by donations and grants. They are all currently excluded by law. The need for these entities will be met by additional legislation, either a new bill or an amendment to SVOG.

The second category of potentially excluded entities are those that do indeed meet all of the qualifications as written in the law, yet there is a movement to exclude them based on the “intent” of the law. These entities all occur in the “Live Performing Arts Organization Operators” category. This move to exclude these entities has been manifest in both the FAQs and the letters the SBA has sent to various entities in the last 2 weeks.

The law was written in a manner that ties Live Venue Operators, promoters, theatrical producers and live performing arts organization operators together every step of the way. Talent Agents and Talent Mangers are tied together. This group has no qualification issues. Museums are in a group alone. This group has no qualification issues. Movie Theaters are in a group alone. This group has no qualification issues.

The attempt to exclude the many entities in the Live Performing Arts Organization Operator category is also potentially excluding Promoters and Theatrical Producers. The various incorrect and unfair questions asked of this entire category serves to attempt to exclude entities.

The law as written only requires Venues to have defined performance spaces and audience spaces, sound, lighting, public address system, particular employees, marketing, ticket manifests and such. Yet, to date, everyone in this “bundled” category is being asked the same unfair questions about having the above requirements in an effort to exclude entities. The unfair questions are being asked of promoters, theatrical producers and live performing arts organization operators.

It has been asked many times, “Who does qualify as a Live Performing Arts Organization Operator”, and no reply has been provided. It seems that every entity that would fall in that category has been told they are excluded via FAQs and letters. But, many do meet every legal requirement as written in the law. The SBAs sole position continues to be “That is not the intent of the law”. Law is to be enforced on language, not intent. If a law is not written correctly, you can amend it and correct it. The SBA did just that when they “undid the PPP / SVOG trap”.

The SBA has struggled the last 2 weeks attempting to produce an application that meets the “intent” of the law as a small group of people define it. This is wrong. Having spoken to a large number of Senators and Representatives, they have stated it was not their intent to provide relief to only a top heavy, narrow slice of the industry. To summarily dismiss entities that do qualify only because a select few feel those entities were never “intended” to be provided assistance flies in the face of the law.

The comment has been made that the “intent” of this funding is “only for venues” as it is called the Shuttered Venue Operators Grant. That is simply not true. Also included by law are talent managers, promoters, talent agents, movies theaters, museums, theatrical producers and live performing arts organization operators. None of these are venues. The exclusion effort is aimed solely at live performing arts organization operators. All of the other “non venue” entities are included.

To provide assistance to all of the entities that meet the legal qualifications as written in the SVOG law will take more money. Legislators are working on finding that money now. It is available in many places, sitting unspent in other funds. It was previously appropriated and needs to be reallocated to SVOG. This is being worked on now.

The entire Live Performing Arts Industry needs to pull together as one and support each other. No single channel needs to be pulling against the entire industry. If we are all one voice to Congress, they will indeed reallocate the needed money and provide funding to all entities that qualify. The SBA must stop trying to exclude anyone using incorrect, unfair questions to simply meet the “intention” of the law as a small set of people define it. When the industry unifies, everyone that qualifies under the law as written will receive needed funding.

Once that is achieved, the first group is still excluded by the 70% income portion of the law. We will continue to work for change in that area as well. We will either amend SVOG to remove the 70% or pass a new bill to provide proper funding to the entities in that group that are currently excluded.

The last point is that most of the diversity in the Live Performing Arts Industry resides in the entities that the SBA is attempting to exclude. The minorities, the underserved, the communities of color, the women owned, the LGBTQ and all other minorities exist in the entities that the SBA is attempting to exclude. As far as we have come to assure Diversity and Equity, to deny all of the targeted entities will also exclude almost all of the diversity in our great industry. We simply cannot allow this to occur.

I again urge you to write the people below. Tell them YOUR story. Be pleasant. Make it personal. Ask them to help the industry as the law is written. Urge them to not ignore the Equity and Diversity issues they will create by following what few call the “intent” of the law. Follow the law as written and allow everyone that meets the qualifications to participate in SVOG.

I urge you to e-mail the people below now.
Also e-mail your Senators and Representatives.

SBA

James.rivera@sba.gov
Barbara.carson@sba.gov
Andrea.roebker@sba.gov
Alastair.betz@sba.gov

Senator Amy Klobuchar
lindsey_kerr@klobuchar.senate.gov, Chief of Staff
doug_calidas@klobuchar.senate.gov, Legislative Director

Senator Amy Klobuchar
lindsey_kerr@klobuchar.senate.gov, Chief of Staff
doug_calidas@klobuchar.senate.gov, Legislative Director

Senator John Cornyn
beth_jafari@cornyn.senate.gov, Chief of Staff
stephen_tausend@cornyn.senate.gov, Legislative Director

Senator Chuck Schumer
Meghan_taira@schumer.senate.gov  Legislative Director

Thank you all for everything you do.
Please act now.
The more letters we write, the louder we are.

ONWARD AND UPWARD.
WE DON’T LOSE ‘TIL WE QUIT.
NEVER QUIT.

Thank you,
Michael T. Strickland

SVOG Application
SVOG User Guide

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