Skip to main content

Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About
Trending Topics
    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Entertainment & Media
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor, Employment, and Benefits
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations
    Industries

    View All

    • Aviation
    • Cannabis
    • Consumer
    • Energy
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Nonprofit Organizations
    • Real Estate
    • Sports & Stadiums
    • Technology
    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Environmental, Social, and Governance (ESG)

      We help clients create positive return on investments in people, products, and the planet.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    • Women in Dealmaking

      We provide strategic counsel on complex corporate transactions and unite dynamic women in the dealmaking arena.

    1. Home
    2. Insights
    3. Alerts
    4. When there is no business in show business: Government support steps in to help struggling venue operators

      Alerts

    Alert / Coronavirus Stimulus & Relief

    When there is no business in show business: Government support steps in to help struggling venue operators

    Dec 29, 2020

    LinkedInX (Twitter)EmailCopy URL

    By David Kaufman, Eric Paley and James Hatem

    SBA offers hope to performing/visual arts organizations through its Grants for Shuttered Venue Operators program.

    DOWNLOAD

    PDF: Grants for Shuttered Venue Operators program

    Perhaps few industries have been as negatively affected by the ongoing pandemic as the performing/visual arts sector. As part of the massive COVID-19 relief bill recently passed by Congress and signed into law on Sunday night, Dec. 27, the U.S. government is providing $15 billion in support to entities that qualify as a “live venue operator or promoter, theatrical producer, or live performing arts organization operator[;] a relevant museum operator[;] a motion picture theatre operator[;] or a talent representative.”

    The Small Business Administration (SBA) will run the Grants for Shuttered Venue Operators program, and importantly, unlike the SBA’s Paycheck Protection Program (PPP), the available funds are outright grants as opposed to forgivable loans. Including the funds to support live venues was particularly important to Senate Minority Leader Chuck Schumer (D-NY). After the bill’s passage, Schumer stated in a Senate address, “These venues are so important to my state and so many other states across the country. They are the lifeblood of our communities. They were the first to close and will be the last to open. This bill gives them a fighting chance.”

    Since the program involves a grant and not a loan, entities seeking support will apply directly to the SBA, not a bank. The SBA is still working out the details of that application process. However, the law does provide eligibility requirements, a process for allocating funds, a formula for grant calculation, and a list of permissible fund uses. According to the legislation, the SBA is to prioritize support for small operators (i.e., those with fewer than 50 employees), as well as those entities that saw the greatest drop in revenue. The law first opens the program up to operators who saw a 90% drop in revenue in 2020 compared to 2019. Fourteen days later, the SBA will award funds (for an additional 14 days) to those organizations that have seen at least a 70% drop in revenue. The program dedicates two billion dollars of funding to those small operators with fewer than 50 employees.

    After the priority funds have been allocated, the general program will provide support for operators that have seen at least a 25% drop in revenue.

    All applicants can seek support constituting 45% of their 2019 revenue up to $10 million. Operators must have been in business on February 29, 2020, and commit to being open again if currently closed.

    The law provides very detailed criteria to be used to determine whether operators qualify for the grants. For example, requirements for some grant categories mandate an operator having “[m]ixing equipment, a public address system, and a lighting rig.” There are also several exclusions, including disqualifying an operator who “presents live performances of a prurient sexual nature.”

    As the SBA prepares the application process, additional details are likely to be revealed by the agency that may have an impact on eligibility, funding, permitted uses, and other aspects of the program. Nixon Peabody will be monitoring this process and providing guidance as operators consider their options under the program.

    Practices

    Financial Restructuring & BankruptcyFranchising & DistributionMergers, Acquisitions, and Corporate Transactions Private Equity & Investment FundsTaxReal Estate

    Industries

    Arts & Cultural InstitutionsFood, Beverage & AgribusinessBanking & FinanceNonprofit OrganizationsReal Estate

    Insights And Happenings

    • Press Release

      Fourth Circuit affirms district court order granting motion to dismiss, recognizing that action against sovereign Dutch entities cannot go forward

      Feb 3, 2022
    • Press Release

      Nixon Peabody advises joint venture on California’s first RAD for PRAC low-income housing transaction

      June 17, 2021
    • Article

      Nixon Peabody 2020 MAC Survey

      Jan 14, 2021
    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Cookie Preferences
    • Privacy Policy
    • Terms of Use
    • Accessibility Statement
    • Statement of Client Rights
    • Purchase Order Terms & Conditions
    • Nixon Peabody International LLC
    • PAL
    © 2025 Nixon Peabody. All rights reserved