Save Our Stages Act 

What are disqualifying characteristics?

• The business entity must NOT be majority-owned or controlled by a publicly traded corporation.

• The business entity must NOT have received more than 10 percent of gross revenue from federal funding during 2019 (FEMA disaster assistance excluded).

• The business entity must NOT have all three of the following characteristics:

  • Owning or operating venues, museums, motion picture theatres, or talent agencies in more than one country.

  • Owning or operating venues, museums, motion picture theatres, or talent agencies in more than ten states.

  • Employing more than 500 FTEs as of February 29, 2020 (30+hr./wk. = 1 FTE and 10-30 hrs./wk. =.5 FTE).

• The business entity must NOT offer performances, services, or goods of an excessive sexual nature.

What are the eligibility requirements specific to live performance venues and promoters, performing arts organizations, and producers?

• Generally, the venues at which the live venue operator or promoter, theatrical producer, or live performing arts organization operator promotes, produces, manages, or hosts live concerts, comedy shows, theatrical productions, or other events by performing artists or the artists and entertainers represented or managed by the talent representative perform must have all of the following characteristics:

  • A defined performance and audience space.

  • Mixing equipment, a public address system, and a lighting rig.

  • Engages 1 or more individuals to carry out at least 2 of the following roles: sound engineer, booker, promoter, stage manager, security personnel, box office manager.

  • Imposes a paid ticket or cover charge to attend most performances and artists are paid fairly and do not play for free or solely for tips (except fundraisers/charities). 

  • Events are produced and managed primarily by paid employees, not volunteers.

  • Performances are marketed through print or online media.

• Additionally, one of the two following eligibility scenarios must be met:

  • Eligibility Scenario #1:

    • The business entity must, as a principal business activity, organize, promote, produce, manage, or host live concerts, comedy shows, theatrical productions, or other events by performing artists.

    • A cover charge through ticketing or front door entrance fee must be applied.

    • Performers must be paid in an amount based on percentage of sales, a guarantee in writing or standard contract, or another mutually beneficial formal agreement.

    • At least 70% of the entity’s earned revenue is derived from cover charges or ticket sales, production fees or production reimbursements, nonprofit educational initiatives, or the sale of event beverages, food, or merchandise in conjunction with a live event.

  • Eligibility Scenario #2:

    • The business entity, as a principal business activity, makes available for

    • purchase by the public an average of not less than 60 days before the date of the event tickets to live concerts, comedy shows, theatrical productions, or other events by performing artists.

    • Performers must be paid in an amount based on percentage of sales, a guarantee in writing or standard contract, or another mutually beneficial formal agreement.

What is the amount of the SOS grant?

• Initial Grant: The amount equal to 45% of 2019 gross earned revenue.

  • NOTE: Entities that began operations after January 1, 2019 will be eligible for the average monthly gross earned revenue for each full month during which the eligible person or entity was in operation during 2019 multiplied by 6.

• Supplemental Grant: If funds remain after initial grants are distributed, a second grant equal to 50% of the initial grant amount may be awarded to entities still experiencing 70% earned revenue loss when comparing the first quarter of 2021 with the first quarter of 2019. The total amount of the initial and supplemental grants awarded may not exceed $10 million.

Who will be first to apply for SOS grants?

• The Small Business Administration must write and implement regulations to administer the SOS program. After that is completed, it will begin accepting initial grant applications. Applications for supplemental grants will likely not be accepted until on or after April 1, 2021.

• Days 1-14: The only applications accepted will be from entities whose total revenue for April 1, 2020 through Dec. 31, 2020 is 10% or less of their 2019 gross revenue for the same period.

• Days 15-28: The only applications accepted will be from entities whose total revenue for April 1, 2020 through Dec. 31, 2020 is 30% or less of their 2019 gross revenue for the same period.

• Day 29 and on: Any eligible entity may apply for an initial grant.

• NOTE: No more than 80% of the total allocation may be awarded in the first 28 days.

• NOTE: $2 billion (of the $15 billion program) is reserved for entities with fewer than 50 FTEs.

What are the allowable expenses?

• Initial grants may be used for allowable expenses incurred between March 1, 2020 and December 31, 2021. If a supplemental grant is received, those funds may be used for allowable expenses incurred before June 30, 2022.

• Allowable expenses include payroll, rent payments, mortgage payments, utilities, debt payments for debt incurred in the ordinary course of business, PPE, independent contractor payments up to $100,000/year, maintenance expenses, administrative costs including fees and licensing costs, state and local taxes and fees, operating leases, insurance, and advertising, travel and capital expenditures for live performances.

• Prohibited expenses include the purchase of real estate, loan payments on loans originated after February 15, 2020, investment or re-loan of funds, and political contributions.

Other Provisions

• The entity must certify that the uncertainty of current economic conditions makes necessary the grant to support the entity’s ongoing operations.

• An entity is ineligible for an SOS grant if you receive a PPP loan on or after the date of enactment of the SOS Act.

• For the purposes of measuring revenue loss, CARES Act funding should not be counted toward gross revenue. SBA may use alternate methods to determine loss of seasonal employers.

• Accrual accounting should be used to determine revenue.

• Unlike PPP, this program does not apply PPP affiliation rules. However, no more than five affiliated entities may receive an SOS grant. Each affiliated entity – including any parent company – must meet all eligibility requirements.

• Grant use will be reviewed by the SBA to determine fraud, noncompliance, or misspent funds. Grant recipients will need to retain 4 years of employment record and 3 years of other records following receipt of the grant.