NSAI…Nashville Songwriters Association International Representing songwriters in all genres of music with 100 chapters worldwide
March 21, 2020
Dear Member of Congress:
I am writing on behalf of one of the hardest and most immediately impacted-by-the-Coronavirus sectors of the American workforce, songwriters, musicians and support personnel. Specifically, those who help comprise the live and recorded music industry.
First, it is important to realize the devastating impact on songwriters and other music industry creators and their support teams in the digital-delivery era of music. Internet music piracy, followed by ridiculously low streaming royalty payments set under century-old rules resulted in catastrophic losses in the number of American music creators. Songwriters who managed to survive turned to live music to generate a significant percentage of their income, even those who would not characterize themselves as performers. They now play shows for a few hundred dollars in order to pay their rent. With the disappearance of sales income, record labels and the entire industry shifted to a music economy more based on live performance revenue.
Just as one of our country's most important cultural and economic industries began to recover, live music performances were hit immediately and hard over the past few weeks as virtually all shows in venues of every description have been cancelled. Similarly, studio musicians have seen recording work disappear during the same period of time.
Most of the described affected individuals are sole proprietors/independent contractors. That is why making them eligible for Small Business Administration loans is critical. Such inclusion will help these individuals weather the pandemic storm and help them return to work when a sense of normalcy returns to America.
The Nashville Songwriters Association International (NSAI) asks that you support the inclusion of the language "payroll costs to include compensation by an eligible recipient to a sole proprietor or independent contractor" in the stimulus package. Adding this and accompanying language is essential. (Inclusions on page 2)
Many live music events have been postponed and recording sessions cancelled, but great compositions will fill venues once again. Songs will help the world overcome the Coronavirus just as they have every human challenge for millennia. Help us assist the songwriters, composers, musicians, producers, engineers, artists and their music support teams that will write and perform the future soundtrack for our nation and the world.
PHASE THREE LANGUAGE INCLUSIONS
SEC. 1102. 7(a) LOAN PROGRAM.
(a) Definition of Covered Period.—In this section, the term “covered period” means the period beginning on March 1, 2020 and ending on December 31, 2020.
(b) Increased Eligibility for Certain Small Businesses and Organizations.—
(1) In general.—During the covered period, any business concern, private nonprofit organization, or public nonprofit organization which employs not more than 500 full time employees shall be eligible to receive a loan made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), in addition to small business concerns.
(2) Exclusion of nonprofits receiving medicaid expenditures.—Paragraph (1) shall not apply to a nonprofit entity eligible for payment for items or services furnished under a State plan under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or under a waiver of such plan.
(3) Inclusion of sole proprietors and independent contractors.— During the covered period, individuals who operate under a sole proprietorship, or as an independent contractor shall be eligible to receive a loan made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), in addition to small business concerns.
SEC. 1105. LOAN FORGIVENESS.
(a) Definitions.—In this section—
(1) the term “covered 7(a) loan” means a loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) that is made during the covered period;
(2) the term “covered period” means the period beginning on March 1, 2020 and ending on June 30, 2020;
(3) the term “eligible recipient” means the recipient of a covered 7(a) loan; and
(4) the term “payroll costs” shall not include—
(A) the compensation of an individual employee in excess of $33,333 during the covered period;
(B) qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act; or
(C) qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act.
(5) the term “payroll costs” shall include—
(A) compensation paid by an eligible recipient to a sole proprietor or independent contractor; or
(B) compensation paid by an eligible recipient under Sec. 1102 (b)(3) to offset lost income.
Sincerely,
Bart Herbison, Executive Director
Nashville Songwriters Assn. International / www.nashvillesongwriters.com