Remember when we couldn’t wait for 2020 to end?
I have to admit, I had an irrational hope that things might magically start looking up in the new year. I knew the COVID battle was far from over, but I was hoping to catch a glimpse of light at the end of the tunnel.
Yeah…not so much, as it turns out.
I got a message from a local reporter last week, she wanted to check in with us and see how things were going. We set up a Zoom interview, and I filled her in on where we are. She thought we would be back in business and booking live music by now, and I think she was taken aback when I filled her in on how dire the situation actually still is for music venues in New York. I’m not totally sure they will even end up airing the interview.
If you’re curious, here’s a snapshot of what’s happening in 443-Land right now:
Save Our Stages/Shuttered Venue Operators Grant
The Save Our Stages act – now known as the Shuttered Venue Operators Grant – was passed at the end of 2020. Great news, right? SVOG would give us 45% of our 2019 revenue. If we remain closed for the first quarter of 2021 (we plan to) and there are still funds available, we can apply for a 2nd grant for 50% of the original one. Because 2019 was our first year in business this isn’t a huge number in our case, but it would give us a fighting chance to survive.
We are now into February and still have zero information about when applications might open up. A lot of venues – including ours – are on the brink of being evicted while we sit waiting for the SBA to open up the program. Many of us have landlords who only own one property and simply cannot afford to go indefinitely without their tenants paying rent.
SVOG is structured so venues that lost 90% or more of their revenue are the only ones who can apply in the first two weeks. Because we tried to be open in the early fall, we don’t quite hit that benchmark – we were down 83%. We couldn’t break even with all the restrictions, but the sales still count against us. We have to wait until they are three weeks in before we can apply.
Another wrinkle –
The amount of the original bill was based on NIVA’s estimate of what independent music venues would need to recover. In the course of getting the bill approved, zoos, aquariums, museums, and movie theaters were added without increasing the pot of money. The general consensus is that the fund will run out and the second round of grants will likely not happen, although we’ve been told Sen. Chuck Schumer is working to allocate about 2 billion dollars more for SOS/SVOG in the current aid package.
It’s not an exaggeration to say our very existence hinges on getting this grant.
And all we can do is wait.
PPP Loans
There is another round of PPP funding available right now, but unfortunately, if we want to apply for SOS/SVOG we cannot take advantage of it. A lot of venues are really struggling with this, it’s the whole “bird in the hand” situation. We need help ASAP and likely could get a PPP loan in a couple of weeks. PPP is not ideal – we don’t need another loan to pay back. But nobody knows when SVOG applications will open up or how long the grants will take to process.
In the meantime, we’re hanging by our fingernails with empty bank accounts. What will happen if we are not able to get an SOS/SVOG grant for some unknown reason AND lose our shot at another PPP loan?
Permits and Licenses
We have a slew of expensive permits and licenses coming due: our NY state liquor license is $3162, Onondaga county health department wants $273, and the city of Syracuse is looking for a $500 certificate of use permit and $250 for an entertainment license for the privilege of putting live music on our stage – even though that stage is dark.
At the moment, all of them are insisting on full payment, despite the fact we have been closed for the better part of a year and have no idea when we might be reopening. Does that seem fair?
State Senator Rachel May has introduced a bill extending liquor licenses for one year at no charge, but it has not come up for a vote yet, and if it passes, Gov. Cuomo would have to approve it.
I recently became aware of another utterly ridiculous permit: Syracuse requires a $25 permit for EACH propane heater businesses have in their outdoor spaces. Our patio needs 8-10 to cover the area, so will have to cough up another $200-$250 when we’re ready to reopen. Also, in order to get the permit, the heaters must be the type that has an auto shut-off when the heater is tilted. Of course, none of the 6 units I purchased last year have this feature. I looked around online, and as I suspected, they are more expensive and difficult to find.
Excuse my language, but – WHAT. THE. F#*K?!?!?
Advertising and Charging for Live Music
Normally at this time of year, I’m busy working to fill our calendar with touring acts for the entire year. I can’t do that this year because Gov. Cuomo inexplicably still has a ban on advertising and charging for live music – and I can’t book a touring artist if we can’t sell tickets. The agents I work with tell me there is nothing like this in other states, so if the ban does not get lifted soon they will simply skip New York state altogether.
We are at imminent risk of losing the entire summer season, and possibly the fall too. If we cannot book touring artists in 2021 I don’t think we will survive to see 2022.
COVID Vaccinations
Much of the public is understandably still leery about being out in a social setting, and there is no point in trying to open until people feel safe coming out. Since restaurant workers in Onondaga county are not eligible for the vaccine yet, I would be putting my staff at extreme risk by making them wait on maskless customers given the new more contagious variants floating around. We are hopeful distribution will speed up with the new administration, but right now the pace is still slower than anyone would like.
IF we get the SOS grant and IF Gov. Cuomo lifts the ban on selling tickets and advertising, we will try to reopen in May, but I suspect we’ll be limited to outdoor shows unless an awful lot more people are able to get vaccinated…and that comes with its own set of issues, like Syracuse’s unpredictable weather.
Doesn’t sound very optimistic, does it?
It’s beyond frustrating because the solutions are simple. The SBA should process applications forthwith. The state, county and city could give businesses decimated by COVID a year’s grace. The governor could lift his absurd ban on advertising and ticketing at one of his weekly press conferences – and I don’t even mind if he wants to pretend this silly rule made a difference…have at it.
Several other states have allocated funds from the CARES Act to help the arts survive COVID, but efforts to make it happen in New York have not been successful. Ironic, considering NYC is such a cultural destination.
We managed to survive 2020 and ended the year hopeful the SOS grant would save us all…we didn’t realize our fight to survive was just beginning. We are doing our best to keep the faith.
