Music Under Severe Income Crisis Act

To make companies that support venues and events eligible for grants under the shuttered venue operators grant program, and for other purposes. 1. Short title This Act may be cited as the Music Under Severe Income Crisis Act 2. Adding service and support companies to the shuttered venue operators grant program (a) In general Section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260 (1) in subsection (a)— (A) in paragraph (1)— (i) in subparagraph (A)— (I) in the matter preceding clause (i), by inserting a service and support company, theatre operator, (II) in clause (i)— (aa) in the matter preceding subclause (I), by inserting the service and support company, theatre operator, (bb) in subclause (I), by inserting a service and support company, theatre operator, (III) in clause (ii)— (aa) in subclause (III), by striking and (bb) in subclause (IV), by adding and (cc) by adding at the end the following: (V) the service and support company is or intends to resume the services and activities described in paragraph (11); ; and (IV) in clause (vi), by inserting the service and support company, theatre operator, (ii) in subparagraph (B), by inserting service and support company, theatre operator, (B) by adding at the end the following: (11) Service and support company The term service and support company (A) means an individual or entity— (i) that is assigned a North American Industry Classification System code of 532490, 541410, 541420, 541430, 541490, 561920, 711190, 711300, or 711320, as appears on the most recent income tax filing or on the application for a loan under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (ii) that— (I) (aa) as the principal business of the individual or entity, provides stages, lighting, sound, casts, or other support for live performing arts events; and (bb) for which not less than 70 percent of the earned revenue generated through providing the support described in item (aa) is for live performing arts events organized, promoted, produced, managed, or hosted by an eligible person or entity described in paragraph (1)(A)(iii); or (II) (aa) as the principal business of the individual or entity, showcases performers or pre-packaged productions to potential buyers; and (bb) for which not less than 70 percent of the earned revenue generated through showcasing performers or pre-packaged productions described in item (aa) is for live performing arts events— (AA) organized, promoted, produced, managed, or hosted by an eligible person or entity described in paragraph (1)(A)(iii); or (BB) hosted in a hotel or convention center facility; (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; and (C) does not include— (i) an individual or entity described in subparagraph (A) that— (I) employs more than 250 full-time employees; or (II) is registered or operates outside of the United States; or (ii) an entity that is majority owned or controlled by an entity that is an issuer, the securities of which are listed on a national securities exchange under section 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78f ; and (2) in subsection (b)(2)(B), by adding at the end the following: (iii) Priority for awards to service and support companies (I) First priority in awarding grants During the initial 14-day period during which service and support companies are eligible to receive a grant under this paragraph, in making awards to those companies, the Administrator shall only award grants to those companies 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 company 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), in making awards to service and support companies under this paragraph, the Administrator shall only award grants to those companies 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 company during the period beginning on April 1, 2019, and ending on December 31, 2019, due to the COVID–19 pandemic. . (b) Transfer of amounts from Coronavirus State and local fiscal recovery funds to Shuttered Venue Operators program (1) Rescission Of the unobligated balances of amounts appropriated under sections 602(a)(1) and 603(a) of the Social Security Act (as added by section 9901 of the American Rescue Plan Act of 2021 ( Public Law 117–2 (2) Appropriation There is appropriated for an additional amount, out of amounts in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2021, an amount equal to the amount rescinded under paragraph (1), to remain available until December 31, 2021, under the heading Small Business Administration—Shuttered Venue Operators Public Law 116–260 (c) Processing previously denied applications If a service and support company, as defined in paragraph (11) of section 324(a) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260 (d) Regulations Not later than 30 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall issue regulations to carry out this Act and the amendments made by this Act without regard to the notice requirements under section 553(b) of title 5, United States Code. (e) Sense of Congress It is the sense of Congress that the Administrator of the Small Business Administration should— (1) issue guidance to ensure that entities whose principal business is to provide services and support to the live events industry remain eligible for the program established under section 324 of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260 (2) distribute funds appropriated for the program described in paragraph (1) not later than 120 days after the date of enactment of this Act.

Summary: Music Under Severe Income Crisis Act This bill expands eligibility for the Shuttered Venue Operators Grant program, which provides emergency assistance for eligible venues affected by COVID-19, to include service and support companies. Such companies are those whose principal business (1) provides stages, lighting, sound, casts, or other support for live performing arts events; or (2) showcases performers or prepackaged productions to potential buyers. In addition, the bill rescinds specified funds that were made available for COVID-19 relief and appropriates an equal amount to make grants to service and support companies.