Most of the U.S. independent venues have bankruptcy risks

The end of the first half of 2020 is approaching and with it, the reopening is currently happening in several countries such as Spain, Italy, and England. Many sectors of the economy, such as commerce, have returned to work, however, the entertainment industry has suffered the most so far and will face a tough situation with many challenges to overcome until 2021. According to a study from NIVA (National Independent Venue Association), 90% of independent venues will close permanently in a few months without federal funding.

This research informs that in the current situation independent venues have zero revenue, but obligations like mortgage/rent, bills, loans, taxes, and insurance continue, in addition to the fact that it is not economically viable to open establishments with partial capacity, with so many fixed costs, as already mentioned. There is also the fact that if the major market can not support artist tours in places such as New York City, Los Angeles, and Chicago, secondary and tertiary cities from smaller markets will be impacted too.

In order to ensure the survival of these businesses, NIVA asks for long-term assistance through the RESTART Act (S. 3814), relief tax credits, and the maintenance for longer periods insurance benefits for employees of shuttered businesses, including contract workers and artists who otherwise do not have access to relief.

Big artists such as Lady Gaga, Billy Joel, and Alabama Shakes are supporting this movement under the hashtag #SaveOurStages. To check the entire document please click here.

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