Los Angeles Times

A ray of hope for L. A.’ s clubs?

Venue owners look to COVID- 19 relief after their ‘ worst year ... since Prohibitio­n.’

- By August Brown

Last week, Michael Swier had an unusual feeling for a music venue owner in 2020: optimism that government might do something to help him.

Swier, who runs the downtown L. A. independen­t venues Teragram Ballroom and Moroccan Lounge, had no choice but to shut his doors in March and watch the COVID- 19 pandemic decimate his industry.

None of his venues has had a show or any meaningful revenue since county and state regulation­s silenced clubs and concerts in the spring.

Still, he wasn’t too surprised that federal and local government­s had done little to help the live music industry. Sens. Amy Klobuchar ( D- Minn.) and John Cornyn ( R- Texas) had championed a bill, Save Our Stages, that would have offered $ 10 billion in grants to venues like his.

But the bill was embedded within a larger COVID- 19 relief package that, although passed by the House, had stalled out in the Republican- led Senate in fall.

“It’s government,” Swier said. “I think people outside our industry didn’t know how deeply live music would be affected.”

But in the same week that COVID- 19 vaccines began to be distribute­d, a second reason for hope emerged. As of Sunday afternoon, Save Our Stages, which seemed like another victim of Republican resistance to the stimulus measure, looks to have made it into the f inal $ 900- billion economic aid package.

“We’re in a good place,” Klobuchar told The Times

on Tuesday after a Senate hearing on COVID- 19 and the live events industry. She was careful to note that the exact language of the aid package was still being finalized.

“It’s been too long in coming, and we’re dependent on the package passing. But Save Our Stages has always had bipartisan strength,” Klobuchar said. “I’m very optimistic. We shouldn’t be the Congress that let music die.”

Dayna Frank, owner and chief executive of First Avenue Production­s and board president of the National Independen­t Venue Associatio­n, said in a statement on Sunday: “We’re thrilled that Congress has heard the call of shuttered independen­t venues across the country and provided us a crucial lifeline by including the Save Our Stages Act in the Omnibus COVID- 19 Relief Bill.

“We’re also incredibly grateful that this bill provides Pandemic Unemployme­nt Assistance which will help the millions of people who lost their jobs through no fault of their own during this economic crisis.

“We urge swift passage of this legislatio­n, which will assist those in the greatest need and ensure the music lives on for generation­s to come.”

If a COVID- 19 relief bill — one with Save Our Stages provisions included — is signed into law by Donald Trump in the waning days of his presidency, it might keep venues alive until enough Americans receive a vaccine and, perhaps in late spring or summer, shows can safely resume.

“We’re waiting with bated breath,” Swier said. “We’ve been on the cusp a couple of times, so hopefully, this will happen and everyone can take a big breath of fresh air.”

For months, music venues big and small, in major markets and smaller ones, have been paralyzed with uncertaint­y about how to move forward. As long as the pandemic continued to rip through the country — on Saturday alone, more than 37,000 new cases and at least 215 deaths were reported in California — indoor concerts seemed a distant hypothetic­al.

Even mega- promoters like Live Nation and AEG have seen revenues vanish and have instituted draconian layoffs and cutbacks.

Groups such as the National Independen­t Venue Assn. have pushed for federal relief since summer, and Save Our Stages looked like the best hope. It would create a pool of $ 10 billion that the Small Business Administra­tion would tap for grants to independen­t venues.

The measure was included in the Heroes Act passed by the Democratic­led house in November, but as negotiatio­ns over a comprehens­ive bill ground down in the Senate, its prospects dimmed, as did any sense among venue operators that help would ever be coming.

“We’ve lost millions in revenue. It’s probably been the worst year for our industry since Prohibitio­n,” said Mitch Edelson, who owns the Silver Lake venue El Cid and Catch One, the Mid- City venue and dance club famous in Black LGBTQ history.

As Save Our Stages seemed thwarted, Edelson said, “Was I surprised? No.

Disappoint­ed? Incredibly. We bailed out the airlines, but how about the venues where we all have memories?”

Some clubs have had to turn to their fan base to keep the lights on.

“After 24 years, the pandemic just exhausted me, and I thought maybe now was the time to throw in the towel,” said Scott Craig, co- owner of the Silver Lake LGBTQ nightclub and electronic- music mainstay Akbar. The club announced last week that it was on the verge of closing.

A successful GoFundMe effort raised $ 180,000, but “we don’t expect to open until early summer. It’s heartbreak­ing,” Craig said.

“This bar was created out of the AIDS epidemic and, with the present pandemic, not being able to console people physically is real tough. Government needs to recognize the value of small institutio­ns like ours.”

With just days left in a 2020 often bereft of good news, the f irst shipments of vaccines have offered a measure of relief and a vague timeline around which venues could begin to plan.

But the day when they can f ling open their doors again might be six months or more away. Unlike with other businesses, opening at reduced capacity makes little sense for a venue paying to book bands and staff for a show.

It would be a bitter irony if clubs that have lasted this long were to run out of funds now, with an end to the pandemic finally in sight.

“The vaccines are going to take months to be fully effective, so we have to help these businesses so they don’t fail,” Klobuchar said. “Smaller venues and smaller markets operate on even slimmer margins. There’s a whole ecosystem of jobs there, so we’ve got to make sure they survive the next few months.”

For L. A. venues in dire straits, the money would provide, as Swier said, a “bridge to the other side” of the pandemic.

After it’s signed into law, eligible independen­t venues could apply for grants of up to 45% of their 2019 revenue, as much as $ 12 million. ( It’s uncertain how long it would actually take for applicatio­ns to be processed and checks to arrive.)

With another six months of shutdown looming even with widespread vaccinatio­n, that money could mean the difference between shuttering and surviving.

“There are still some hard months to go through,” Swier said, “but this relief will help.”

“It does feel like almost time to start our engines,” Edelson agreed. “It’s been super painful, with bills stacking up and the city and state still expecting us to pay for licenses and taxes. I know it’s going to take patience, but I really hope this stimulus comes through.”

In the meantime, venue owners like Akbar’s Craig are crossing their f ingers that the language from Klobuchar’s Save Our Stages bill makes it over the f inish line, for Silver Lake gay disco clubs and smalltown juke joints alike.

“I always did like her,” Craig said of the senator, laughing. “All across the country, these institutio­ns need help. Otherwise, all the life in these towns will go away. L. A.’ s music scene is incredible, and Lord knows large corporatio­ns have been getting help.

“I can imagine that there’s a great little bar in Omaha that can really use these funds too.”

 ?? Barbara Davidson Los Angeles Times ?? “WE’RE waiting with bated breath,” Michael Swier, at his Teragram Ballroom, says of aid for nightclubs.
Barbara Davidson Los Angeles Times “WE’RE waiting with bated breath,” Michael Swier, at his Teragram Ballroom, says of aid for nightclubs.

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