PRIA, Government Policy, Made Personal

Summary

Gives money to live venues, promoters, theatrical producers, performing arts organizations, relevant museums, movie theaters, and talent agents that were open on February 29, 2020 and that lost at least 25% of their gross earned revenue in a quarter of 2020 compared to the same quarter in 2019 (apps filed on or after January 1, 2021 can use the fourth quarter). To get a grant the business must be open or planning to reopen and must meet basic venue rules (for example, a defined performance and audience space, sound/lighting/PA equipment, paid tickets or cover charges, and paid staff for key roles) or, for theaters and museums, similar basic features. Businesses that mainly show sexually explicit material are excluded. The business (or its majority owner) may not be publicly traded, may not have gotten more than 10% of 2019 revenue from federal funding (except Stafford Act money), and may not have more than two of these: operate in more than one country, operate in more than 10 States, or have more than 500 full‑time equivalent employees (30+ hours = 1 FTE, 10–29 hours = 0.5 FTE). Each separate business entity that meets these rules may be treated independently. The Small Business Administration runs the grants and applicants must certify they need the money. For the first 14 days, grants go only to businesses whose revenue from April 1–December 31, 2020 was no more than 10% of that same period in 2019; the next 14 days go to those at no more than 30%. Up to 80% of the funds for this program may be used for those first 28 days. No more than 5 affiliated business entities can get initial grants. At least $2,000,000,000 is set aside for businesses with 50 or fewer full‑time employees until 60 days after awards begin. Initial grants equal the lesser of 45% of 2019 gross earned revenue (or six months of average monthly 2019 revenue for businesses that started after January 1, 2019) or $10,000,000 (relevant museum operators are limited to $10,000,000 total). The grant amount is reduced by certain new PPP loans received on or after December 27, 2020. A supplemental grant equal to 50% of the initial grant may be given if, as of April 1, 2021, the most recent quarter’s revenue is no more than 30% of the same 2019 quarter, but supplemental grants wait until initial applications filed within 60 days are processed. Grant money can pay costs from March 1, 2020 through December 31, 2021 (or through June 30, 2022 if a supplemental grant is received). Allowed uses include payroll, rent, utilities, scheduled mortgage or other pre‑February 15, 2020 debt payments, worker protection costs, payments to contractors (capped at $100,000 per person), and ordinary business expenses; grants cannot buy real estate, pay loans made after February 15, 2020, be invested or re‑lent, or be used for political contributions. Recipients must keep employment records for 4 years and other records for 3 years, and the SBA will audit, review, and require repayment or pursue legal action for fraud. The SBA must send an audit plan within 45 days after December 27, 2020 and monthly oversight reports starting 60 days after that date until the funds are spent.

Title 15, §9009a

Commerce and Trade, Source: USLM XML via OLRC

(a)Definitions

In this section: (1) Eligible person or entity

(2)Exchange; issuer; security

The terms “exchange”, “issuer”, and “security” have the meanings given those terms in section 78c(a) of this title.

(3)Live venue operator or promoter, theatrical producer, or live performing arts organization operator (4) Motion picture theatre operator (5) National securities exchange

The term “live venue operator or promoter, theatrical producer, or live performing arts organization operator”— (A)

(B)includes an individual or entity described in subparagraph (A) that—

(i)operates for profit;

(ii)is a nonprofit organization;

(iii)is government-owned; or

(iv)is a corporation, limited liability company, or partnership or operated as a sole proprietorship.

(6)Nonprofit

The term “nonprofit”, with respect to an organization, means that the organization is exempt from taxation under section 501(a) of title 26.

(7)Relevant museum

The term “relevant museum”—

(A)has the meaning given the term “museum” in section 9172 of title 20; and

(B)shall not include any entity that is organized as a for-profit entity.

(8)Seasonal employer

The term “seasonal employer” has the meaning given that term in subparagraph (A) of section 636(a)(36) of this title, as amended by this Act.

(9)State

The term “State” means—

(A)a State;

(B)the District of Columbia;

(C)the Commonwealth of Puerto Rico; and

(D)any other territory or possession of the United States.

(10)Talent representative

The term “talent representative”—

(A)means an agent or manager that—

(i)as not less than 70 percent of the operations of the agent or manager, is engaged in representing or managing artists and entertainers;

(ii)books or represents musicians, comedians, actors, or similar performing artists primarily at live events in venues or at festivals; and

(iii)represents performers described in clause (ii) that are paid in an amount that is based on the number of tickets sold, or a similar basis; and

(B)includes an agent or manager described in subparagraph (A) that—

(i)operates for profit;

(ii)is a nonprofit organization;

(iii)is government-owned; or

(iv)is a corporation, limited liability company, or partnership or operated as a sole proprietorship.

(b)Authority

(1)In general

(A)Administration

The Associate Administrator for the Office of Disaster Assistance of the Administration shall coordinate and formulate policies relating to the administration of grants made under this section.

(B)Certification of need

An eligible person or entity applying for a grant under this section shall submit a good faith certification that the uncertainty of current economic conditions makes necessary the grant to support the ongoing operations of the eligible person or entity.

(2)Initial grants

(A)In general

The Administrator may make initial grants to eligible persons or entities in accordance with this section.

(B)Initial priorities for awarding grants

(i)First priority in awarding grants

During the initial 14-day period during which the Administrator awards grants under this paragraph, the Administrator shall only award grants to an eligible person or entity with revenue, during the period beginning on April 1, 2020 and ending on December 31, 2020, that is not more than 10 percent of the revenue of the eligible person or entity during the period beginning on April 1, 2019 and ending on December 31, 2019, due to the COVID–19 pandemic.

(ii)Second priority in awarding grants

During the 14-day period immediately following the 14-day period described in clause (i), the Administrator shall only award grants to an eligible person or entity with revenue, during the period beginning on April 1, 2020 and ending on December 31, 2020, that is not more than 30 percent of the revenue of the eligible person or entity during the period beginning on April 1, 2019 and ending on December 31, 2019, due to the COVID–19 pandemic.

(iii)Determination of revenue

For purposes of clauses (i) and (ii)—

(I)any amounts received by an eligible person or entity under the CARES Act (Public Law 116–136; 134 Stat. 281) or an amendment made by the CARES Act shall not be counted as revenue of an eligible person or entity;

(II)the Administrator shall use an accrual method of accounting for determining revenue; and

(III)the Administrator may use alternative methods to establish revenue losses for an eligible person or entity that is a seasonal employer and that would be adversely impacted if January, February, and March are excluded from the calculation of year-over-year revenues.

(iv)Limit on use of amounts for priority applicants

The Administrator may use not more than 80 percent of the amounts appropriated under section 323(d)(1)(H) of this Act to carry out this section to make initial grants under this paragraph to eligible persons or entities described in clause (i) or (ii) of this subparagraph that apply for a grant under this paragraph during the initial 28-day period during which the Administrator awards grants under this paragraph.

(C)Grants after priority periods

After the end of the initial 28-day period during which the Administrator awards grants under this paragraph, the Administrator may award an initial grant to any eligible person or entity.

(D)Limits on number of initial grants to affiliates

Not more than 5 business entities of an eligible person or entity that would be considered affiliates under the affiliation rules of the Administration may receive a grant under this paragraph.

(E)Set-aside for small employers

(i)In general

Subject to clause (ii), not less than $2,000,000,000 of the total amount of grants made available under this paragraph shall be awarded to eligible persons or entities which employ not more than 50 full-time employees, determined in accordance with subsection (a)(1)(C).

(ii)Time limit

Clause (i) shall not apply on and after the date that is 60 days after the Administrator begins awarding grants under this section and, on and after such date, amounts available for grants under this section may be used for grants under this section to any eligible person or entity.

(3)Supplemental grants

(A)In general

Subject to subparagraph (B), the Administrator may make a supplemental grant in accordance with this section to an eligible person or entity that receives a grant under paragraph (2) if, as of April 1, 2021, the revenues of the eligible person or entity for the most recent calendar quarter are not more than 30 percent of the revenues of the eligible person or entity for the corresponding calendar quarter during 2019 due to the COVID–19 pandemic.

(B)Processing timely initial grant applications first

The Administrator may not award a supplemental grant under subparagraph (A) until the Administrator has completed processing (including determining whether to award a grant) each application for an initial grant under paragraph (2) that is submitted by an eligible person or entity on or before the date that is 60 days after the date on which the Administrator begins accepting such applications.

(4)Certification

An eligible person or entity applying for a grant under this section that is an eligible business described in the matter preceding subclause (I) of section 4003(c)(3)(D)(i) of the CARES Act (15 U.S.C. 9042(c)(3)(D)(i)), shall make a good-faith certification described in subclauses (IX) and (X) of such section.

(c)Amount

(1)Initial grants

(A)In general

Subject to subparagraphs (B) and (C), a grant under subsection (b)(2) shall be in the amount equal to the lesser of— (i)

(ii)$10,000,000.

(B)Application to relevant museum operators

A relevant museum operator may not receive grants under subsection (b)(2) in a total amount that is more than $10,000,000 with respect to all relevant museums operated by the relevant museum operator.

(C)Reduction for recipients of new PPP loans

(i)In general

The otherwise applicable amount of a grant under subsection (b)(2) to an eligible person or entity shall be reduced by the total amount of loans guaranteed under paragraph (36) or (37) of section 636(a) of this title that are received on or after December 27, 2020 by the eligible person or entity.

(ii)Application to governmental entities

For purposes of applying clause (i) to an eligible person or entity owned by a State or a political subdivision of a State, the relevant entity—

(I)shall be the eligible person or entity; and

(II)shall not include entities of the State or political subdivision other than the eligible person or entity.

(2)Supplemental grants

A grant under subsection (b)(3) shall be in the amount equal to 50 percent of the grant received by the eligible person or entity under subsection (b)(2).

(3)Overall maximums

The total amount of grants received under paragraphs (2) and (3) of subsection (b) by an eligible person or entity shall be not more than $10,000,000.

(d)Use of funds

(1)Timing

(A)Expenses incurred

(i)In general

Except as provided in clause (ii), amounts received under a grant under this section may be used for costs incurred during the period beginning on March 1, 2020, and ending on December 31, 2021.

(ii)Extension for supplemental grants

If an eligible person or entity receives a grant under subsection (b)(3), amounts received under either grant under this section may be used for costs incurred during the period beginning on March 1, 2020, and ending on June 30, 2022.

(B)Expenditure

(i)In general

Except as provided in clause (ii), an eligible person or entity shall return to the Administrator any amounts received under a grant under this section that are not expended on or before the date that is 1 year after the date of disbursement of the grant.

(ii)Extension for supplemental grants

If an eligible person or entity receives a grant under subsection (b)(3), the eligible person or entity shall return to the Administrator any amounts received under either grant under this section that are not expended on or before the date that is 18 months after the date of disbursement to the eligible person or entity of the grant under subsection (b)(2).

(2)Allowable expenses

(A)Definitions

In this paragraph

(i)

(ii)the term “payroll costs” has the meaning given that term in section 636(a)(36)(A) of this title.

(B)Expenses

An eligible person or entity may use amounts received under a grant under this section for— (i)

(ii)payments on any covered rent obligation;

(iii)any covered utility payment;

(iv)scheduled payments of interest or principal on any covered mortgage obligation (which shall not include any prepayment of principal on a covered mortgage obligation);

(v)scheduled payments of interest or principal on any indebtedness or debt instrument (which shall not include any prepayment of principal) incurred in the ordinary course of business that is a liability of the eligible person or entity and was incurred prior to February 15, 2020;

(vi)covered worker protection expenditures;

(vii)payments made to independent contractors, as reported on Form–1099 MISC, not to exceed a total of $100,000 in annual compensation for any individual employee of an independent contractor; and

(viii)other ordinary and necessary business expenses, including—

(I)maintenance expenses;

(II)administrative costs, including fees and licensing costs;

(III)State and local taxes and fees;

(IV)operating leases in effect as of February 15, 2020;

(V)payments required for insurance on any insurance policy; and

(VI)advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production, concert, exhibition, or comedy show, except that a grant under this section may not be used primarily for such expenditures.

(3)Prohibited expenses

An eligible person or entity may not use amounts received under a grant under this section— (A)

(B)for payments of interest or principal on loans originated after February 15, 2020;

(C)to invest or re-lend funds;

(D)for contributions or expenditures to, or on behalf of, any political party, party committee, or candidate for elective office; or

(E)for any other use as may be prohibited by the Administrator.

(e)Increased oversight of shuttered venue operator grants

The Administrator shall increase oversight of eligible persons and entities receiving grants under this section, which may include the following:

(1)Documentation

Additional documentation requirements that are consistent with the eligibility and other requirements under this section, including requiring an eligible person or entity that receives a grant under this section to retain records that document compliance with the requirements for grants under this section— (A)

(B)with respect to other records, for the 3-year period following receipt of the grant.

(2)Reviews of use

Reviews of the use of the grant proceeds by an eligible person or entity to ensure compliance with requirements established under this section and by the Administrator, including that the Administrator may—

(A)review and audit grants under this section; and

(B)in the case of fraud or other material noncompliance with respect to a grant under this section—

(i)require repayment of misspent funds; or

(ii)pursue legal action to collect funds.

(f)Shuttered venue oversight and audit plan

(1)In general

Not later than 45 days after December 27, 2020, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an audit plan that details—

(A)the policies and procedures of the Administrator for conducting oversight and audits of grants under this section; and

(B)the metrics that the Administrator shall use to determine which grants under this section will be audited pursuant to subsection (e).

(2)Reports

Not later than 60 days after December 27, 2020, and each month thereafter until the date that is 1 year after the date on which all amounts made available under section 323(d)(1)(H) of this Act have been expended, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the oversight and audit activities of the Administrator under this subsection, which shall include—

(A)the total number of initial grants approved and disbursed;

(B)the total amount of grants received by each eligible person or entity, including any supplemental grants;

(C)the number of active investigations and audits of grants under this section;

(D)the number of completed reviews and audits of grants under this section, including a description of any findings of fraud or other material noncompliance.

(E)any substantial changes made to the oversight and audit plan submitted under paragraph (1).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (a)(1)(A)(vi)(I)(bb), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 5121 of Title 42 and Tables. Subparagraph (A) of section 636(a)(36) of this title, as amended by this Act, referred to in subsec. (a)(8), probably means subpar. (A) of section 636(a)(36) of this title, as amended by title III of div. N of Pub. L. 116–260. The CARES Act, referred to in subsec. (b)(2)(B)(iii)(I), also known as the Coronavirus Aid, Relief, and Economic Security Act, is Pub. L. 116–136, Mar. 27, 2020, 134 Stat. 281, which enacted this chapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of this Act to the Code, see

Short Title

note set out under section 9001 of this title and Tables. section 323(d)(1)(H) of this Act, referred to in subsecs. (b)(2)(B)(iv) and (f)(2), is section 323(d)(1)(H) of title III of div. N of Pub. L. 116–260, Dec. 27, 2020, 134 Stat. 2021, which is not classified to the Code. section 636m(a) of this title, as redesignated, transferred, and amended by this Act, referred to in subsec. (d)(2)(A)(i), probably means section 636m(a) of this title, as redesignated, transferred, and amended by title III of div. N of Pub. L. 116–260. Codification Section was enacted as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and not as part of the CARES Act which in part comprises this chapter.

Amendments

2021—Subsec. (a)(1)(A)(vi)(III), (IV). Pub. L. 117–2, § 5005(b)(1), redesignated subcl. (IV) as (III), substituted “subclauses (I) and (II)” for “subclauses (I), (II), and (III)”, and struck out former subcl. (III) which read as follows: “The live venue operator or promoter, theatrical producer, or live performing arts organization operator, the relevant museum operator, the motion picture theatre operator, or the talent representative has not received, on or after December 27, 2020, a loan guaranteed under paragraph (36) or (37) of section 636(a) of this title, as amended and added by this division.” Subsec. (c)(1)(A). Pub. L. 117–2, § 5005(b)(2)(A), substituted “Subject to subparagraphs (B) and (C), a grant” for “A grant” in introductory provisions. Subsec. (c)(1)(C). Pub. L. 117–2, § 5005(b)(2)(B), added subpar. (C).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see section 348 of Pub. L. 116–260, set out as an

Effective Date

of 2020 Amendment note under section 636 of this title. Clarification of Tax Treatment of Certain Loan Forgiveness and Other Business Financial AssistanceGrant made under this section not included in gross income of recipient, see section 278 of div. N of Pub. L. 116–260, set out as a note under section 9008 of this title. Definitions “Administration” and “Administrator” mean the Small Business Administration and Administrator of the Small Business Administration, see section 302 of div. N of Pub. L. 116–260, set out as a note under section 9001 of this title.

§9009a Grants for Shuttered Venue Operators

Summary

Title 15, §9009a

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata