The Forum in Inglewood, CA is lit in red to support the Restart Act because of the Covid pandemic. ... [+]
Getty ImagesLast night, September 1, 2020, venues large and small throughout the United States lit up their exteriors with red lights. The lights were to show support nationwide for the Restart Act which is currently pending in Congress. The Restart Act (Reviving the Economy Sustainably Towards A Recovery in Twenty-twenty) proposes to amend the federal PPP lending program and creates a new loan program specifically for businesses with less than 5,000 employees. That lending facility would provide 6 months of payroll, benefits and fixed operating expenses in an amount not to exceed 45% of the 2019 gross receipts with a maximum loan amount of $12 million. Operating expenses paid from loan proceeds for such as payroll, benefits, rent, utilities, interest on debt related to mortgages and other debts incurred prior to February 15, 2020 may be forgiven.
Small music venues and theaters are likely the most affected section of live entertainment, at risk of imminent failure as the Covid-19 pandemic grinds on. They’ve been closed since mid-March of this year and it’s looking like they won’t be able to reopen before 2021. That’s months or more without paying customers which puts the entire theater infrastructure in jeopardy.
The Stone Pony in Asbury Park, NJ is lit in red in support of Congressional aid to venues (Photo by ... [+]
Getty ImagesWe Make Events North America organized the red light display and more than 1,600 venues, theaters and other prominent landmarks promised to take part, bathing the outside of their buildings with red lights in solidarity. There’s no more stark reminder of the peril these businesses are facing than to see the red ink of their balance sheets splashed all across their exteriors.
According to information from the National Independent Venue Association which represents 2,500 members, 90% of their membership is at risk of closing without assistance from either the Restart act or the Save Our Stages Act. Save our Stages was introduced in the Senate by New York’s senior senator Chuck Schumer and is focused on providing relief for independent venues, promoters and festivals.
Fundamentally it’s a basic problem. Venues depend on selling tickets and drinks. Smaller venues don’t have teams in residence or subscription series to provide them with ongoing revenues or prepayments. For small venues the money comes in from the door, the kitchen and the door nightly. If the doors are shut, the cash register doesn’t ring. So, when as a result of the pandemic they have been closed by government mandate it’s an issue. Expenses such as rent, insurance and the remaining payroll continue. Revenue stays at zero.
Then what? The answer is predictable. Without assistance, the operator runs out of money and the venue closes. Maybe someone else steps in who can hold the risk. Likely the venue turns into a thrift store or a Starbucks SBUX . This is a problem, because before acts can play on big stages they have to learn how to work a club in small rooms. Smaller venues are more than a highlight of their local regions. They are the entry point for almost all music and comedy acts learning how to tour. Lose the stages and the impact lasts for years on the supply of artists ready to move up the theaters, arenas and stadiums.
Often I like to write in lyrics. This collaborative colored light based undertaking brought back to mind Pink, a classic Aerosmith song.
Pink it was love at first sight
I yell pink when I turn out the light
Last night the venues went red so they didn’t have to turn out their lights. If Congress decides to be part of the solution and provide some green relief, the yelling of ‘pink’ will be avoided. Venues will be able to remain open, lit and welcoming to performers and their audiences.
The Link LonkSeptember 03, 2020 at 07:06AM
https://www.forbes.com/sites/ericfuller/2020/09/02/theaters-and-venues-turned-red-seeking-economic-relief-they-need-green-light-from-congress-for-assistance/
Theaters And Venues Turned Red Seeking Economic Relief, Need Green Light From Congress To Survive. - Forbes
https://news.google.com/search?q=Red&hl=en-US&gl=US&ceid=US:en
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