The House of Representatives Friday evening passed the HEROES Act, which includes provisions to expand eligibility for U.S. Small Business Administration loan access to struggling local newspapers and radio and television stations. The bill would give these media outlets the same treatment as hotels and restaurants received under the original CARES Act PPP – eligibility based on a physical location basis. It would also require a local station to fit within the SBA size standard for the broadcasting industry, or under $41.5 million in revenue annually and ensure that expanded PPP funds would remain at the local level through additional oversight.
Passage of the bill was swiftly applauded by the National Association of Broadcasters. “As local radio and TV stations and hometown newspapers struggle with historic advertising losses, it is critically important they have access to resources to support lifesaving journalism that keep families and communities out of harm’s way,” NAB President & CEO Gordon Smith said in a statement Friday night. Smith thanked House Speaker Nancy Pelosi (D-CA) and Committee on Small Business Chairwoman Nydia Velázquez (D-NY) for including the provisions in the legislation, along with Reps. David Cicilline (D-RI) and Jim Sensenbrenner (R-WI) for leading a bipartisan letter with 124 of their colleagues championing support for local journalism. “We look forward to working with all Members of Congress on legislation to help local media persevere during these unprecedented times,” Smith said.
The 1,815-page HEROES Act passed in the House by a 208-199 vote. However the legislation is not likely to win the backing of Senate Republicans, who have voiced their disapproval of it. In fact, Senate Majority Leader Mitch McConnell called the $3 trillion coronavirus bailout bill a “big laundry list of pet priorities” that has “no chance of becoming law.”
Busy Day For Broadcast Relief Efforts
Friday was an active day for legislation that would help broadcasters and newspapers struggling with the collapse of advertising from government-mandated lockdowns to slow the spread of the coronavirus. Earlier Friday Reps. Cicilline and Sensenbrenner introduced the Local News and Emergency Information Act in the House, standalone legislation that would expand eligibility for U.S. Small Business Administration loan access to local newspapers and radio and television stations. On Wednesday similar legislation was introduced in the Senate by a bipartisan group that included Senators Maria Cantwell (D-WA), John Boozman (R-AR), Amy Klobuchar (D-MN), Joni Ernst (R-IA) and Minority Leader Chuck Schumer (D-NY).
The bill has been panned by the music industry, however, which called it a “warrantless big radio bailout” since it would allow the industry’s largest operators to secure funding on a local market basis. “Truly small, non-commercial and community radio stations shouldn’t be forced to compete with huge companies for limited payroll assistance,” said a joint statement by SoundExchange, the American Association of Independent Music (A2iM), the Future of Music Coalition and the Recording Academy. But the music groups’ real beef remains the lack of a performance royalty right on AM/FM airplay. “There is a difference between supporting vital local news outlets and billion dollar broadcast conglomerates, especially given that these enormous radio conglomerates refuse to compensate recording artists for using their music, in contrast with satellite radio and streaming services that do pay,” they said. Meanwhile the number of House members on record opposing a performance royalty on over-the-air radio airplay continues to near the majority needed to block any bill from passing. The total number of House members siding with radio last week grew to 211. Meanwhile in the Senate, two more Senators have also come out against a radio royalty, bringing the number to 27 in that chamber.
Meanwhile there are several other efforts to use federal advertising dollars to help local media outlets. A letter signed by 244 House members called on the Trump administration to use a portion of federal agency advertising dollars to help local radio, TV and newspapers. A similar letter was signed by 74 Senators, encouraging federal agencies to increase advertising about current and newly created programs and information as a way to boost local media outlets.
And Reps. Cicilline and Sensenbrenner and 124 other Members of the House of Representatives sent a bipartisan letter to Pelosi and House Minority Leader Kevin McCarthy (R-CA) recommending that more local broadcasters and community newspapers be allowed to qualify for SBA loans under the Paycheck Protection Program.
Source: http://www.insideradio.com
