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Photo: Adam Gasson/Future Music Magazine/Future via Getty Images

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Breaking Down The MEUC Program breaking-down-mixed-earner-unemployment-compensation-program

Breaking Down The Mixed Earner Unemployment Compensation Program

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The latest COVID relief package included the Mixed Earner Unemployment Compensation program. How does the MEUC help creators?
Matthew Bango
Advocacy
Jan 13, 2021 - 2:10 pm

When drafting the latest COVID-19 relief package, Congress had music creators in mind when designing the new Mixed Earner Unemployment Compensation (MEUC) program. Signed into law by the President on December 27, 2020, the MEUC program provides "mixed earners," those with both traditional and freelance income, an additional $100 per week benefit if the worker received W2 wages and at least $5,000 in self-employment (such as 1099) income during the latest taxable year. 

The MEUC program is still being implemented across the country, with 50 states and territories soon to make the program accessible to mixed earners in need. Claimants will need to provide documentation in order to qualify for the new benefit, and each participating state and territory will soon offer full guidance to potential recipients.

This enhanced unemployment benefit is in addition to the Federal Pandemic Unemployment Compensation (FPUC) program, which was reauthorized as part of the same COVID-19 stimulus package. The FPUC provides $300 per week in additional unemployment benefits for all individuals receiving unemployment assistance until March 14. All told, mixed earners could soon qualify for an additional $400 per week on top of their existing state unemployment benefit amount.

The Recording Academy has long urged policymakers to remedy the diminished unemployment benefit received by mixed earners following the rollout of the CARES Act. With support from the Academy, Reps. Adam Schiff (D-Calif.) and Judy Chu (D-Calif.) and Sens. Mark Warner (D-Va.) and Tina Smith (D-Minn.) introduced the Mixed Earner Pandemic Unemployment Assistance Act (H.R.7691/S.4442). The legislation aimed to fix this unintentional problem caused by the CARES Act, and ensure that all workers have equitable access to the maximum possible support in future unemployment benefit programs.

Rep. Schiff recently noted the problems facing mixed earners in an interview with The Hollywood Reporter. Schiff said early on in the pandemic he became aware that "those with mixed income were getting a lot less, in some cases not getting anything at all, because their unemployment was based on their W-2 and most of their income was from 1099s." Schiff, whose L.A. district covers many mixed earners employed in the music, film, and arts industries, also pledged to work with "the new administration when there's work on a new package to try to make sure that benefits to mixed-income workers continue."

The Recording Academy will continue to advocate for extended and improved unemployment benefits for music makers in need, and offer guidance to applicants navigating the unemployment system. Please visit MixedIncome.org to learn more about the MEUC and eligibility.

Recording Academy And Music Community Coalitions Continue Advocacy For COVID-19 Relief

GRAMMYs

Photo: Toby Scott/Echoes Wire/Barcroft Media/Getty Images

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CARES Act Turns One 2021-cares-act-first-anniversary

The CARES Act: A Retrospective One Year Later

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After intense advocacy by Recording Academy members, Congress intervened to bolster a cratering economy by passing the bipartisan and bicameral CARES Act, an achievement to celebrate a year after its passage
Matthew Bango
Advocacy
Apr 15, 2021 - 9:03 am

On March 27, 2020, after significant input and backing by the Recording Academy and other organizations, Congress intervened to bolster a cratering economy by passing the bipartisan and bicameral Coronavirus Aid, Relief, and Economic Security (CARES) Act. A $2 trillion stimulus package, the CARES Act was designed to temporarily stabilize the economy and safeguard ties between workers and their employers, including those in the music industry. Now more than one year into the pandemic, let’s look back and celebrate the CARES Act on the first anniversary of its passage, which has proved to be a pivotal lifeline for many music creators.

The CARES Act established innovative relief programs, extended unemployment insurance eligibility to music creators historically excluded from assistance, and appropriated funds to directly support the arts community. With input from the Recording Academy, Congress implemented the Paycheck Protection Program (PPP) to provide relief for self-employed workers and small businesses, passed an unprecedented and historic expansion of unemployment benefits, known as Pandemic Unemployment Assistance (PUA), for gig workers, freelancers, and other self-employed music professionals, and appropriated $75 million in supplemental funding for the National Endowment for the Arts. These programs, and more, gave direct influx of cash to music creators and small businesses at the onset of the pandemic.

https://twitter.com/GRAMMYAdvocacy/status/1243591448638844928

The #CARESAct, a $2 trillion #COVID19 relief package, contains a number of key protections and provisions that put #music creators in a better position for immediate and long-term relief. pic.twitter.com/5T3CRtn2SE

— GRAMMY Advocacy (@GRAMMYAdvocacy) March 27, 2020

Amongst the initial rush of implementation of the CARES Act, many music creators questioned how to best navigate this new relief programs. Recognizing the need for greater assistance within the music ecosystem, the Recording Academy hosted a webinar on how to best navigate the relief landscape and established the “CARES Act Hotline” to answer individual questions. These resources directly assisted hundreds of music creators to accurately apply for a PPP loan and navigate complex unemployment insurance scenarios. 

Future advocacy work then focused on fixing technical problems as they were identified. For example, many “mixed earners,” those with both traditional and freelance income, found themselves to be ineligible for certain unemployment programs due to oversights included in the CARES Act and the antiquated state unemployment systems. Additionally, many small businesses had difficulty accessing PPP money before the program exhausted funding. 

The Recording Academy identified solutions to many of these problems, and shifted gears to ensure relief truly worked for the music ecosystem. Many of these proposed technical corrections were passed as standalone bills, included in subsequent relief packages, or addressed administratively, including extending the PPP application window, establishing a supplemental fund for mixed earners, and improving the PPP formula for self-employed workers, among others.

https://twitter.com/GRAMMYAdvocacy/status/1372016004159660036

Big news for the music community!

Today, the bipartisan and bicameral Help Independent Tracks Succeed (HITS) Act was reintroduced in Washington.

Learn more about the legislation and what it means for independent creators. #HITSAct #SupportCreators https://t.co/FMRySREFZe

— GRAMMY Advocacy (@GRAMMYAdvocacy) March 17, 2021

And as chronicled by Billboard, the Recording Academy and its members didn’t stop with short-term fixes but continued to advocate for long-term solutions to ensure a full recovery for music creators. As part of a year-end spending deal, the Recording Academy and its allies in the music ecosystem secured funding for several creator-friendly legislative priorities, including expanding pandemic unemployment assistance programs for eligible self-employed workers, establishing a $15 billion supplemental fund to assist live music venues, and replenishing SBA loan programs for independent contractors and small businesses, among others. The Academy and its members also managed to secure necessary guidance changes and funding for the SBA relief programs, and an additional extension of unemployment programs for gig workers, self-employed individuals, and mixed earners as part of the American Rescue Plan, which was signed into law in March 2021.

This past year has proven to be physically, emotionally, and mentally difficult for all Americans, and music creators have been particularly impacted by the pandemic. Unable to access traditional income streams and distant from their community, many creators have been left wondering where their next paycheck will originate from or when their next opportunity to reunite with their beloved bandmates will occur. While this year has tested the entire music ecosystem, our ability to stand united behind a shared cause has resulted in tremendous legislative accomplishments.

While our fight against the COVID-19 pandemic started with the CARES Act, we must continue to pressure Congress in support of long-term solutions geared at recovery, including securing the passage of the HITS Act and ensuring the swift implementation of the Shuttered Venue Operators Grant. As always, the Recording Academy and its members will continue to champion legislative solutions to establish a more equitable and creator-friendly music ecosystem.  

Take Action: Ask Congress to Pass the HITS Act

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Uixi Amargós

Uixi Amargós recording during the pandemic

Photo: Xavi Torrent/Getty Images

News
HITS Act Reintroduced help-independent-tracks-succeed-hits-act-reintroduced-house-and-senate

Help Independent Tracks Succeed (HITS) Act Reintroduced in the House and Senate

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The bipartisan and bicameral HITS Act has been reintroduced in the House of Representatives and Senate, delivering much-needed relief to music creators if passed
Matthew Bango
Advocacy
Mar 16, 2021 - 4:14 pm

Today, the bipartisan and bicameral Help Independent Tracks Succeed (HITS) Act was reintroduced in Washington. The Senate version of the bill is again introduced by Sens. Dianne Feinstein (D-Calif.) and Marsha Blackburn (R-Tenn.), and the companion bill in the House of Representatives is sponsored by Reps. Linda Sánchez (D-Calif) and Ron Estes (R-Kan.). The House bill is also supported by Reps. Judy Chu (D-Calif.), Suzan DelBene (D-Wash.), Michael McCaul (R-Texas), and Grace Napolitano (D-Calif.).

The HITS Act, which was first introduced last Congress, is designed to allow artists and record producers to deduct 100 percent of sound recording production expenses in the year they are incurred, rather than amortized over the life of the recording, typically 3-4 years. The bill eases the financial burden placed on independent artists by removing the multi-year amortization requirement and allowing an individual to fully expense the cost of new studio recordings on their taxes, up to $150,000.

The HITS Act also aligns the tax code for music production with similar provisions for other creative industries. Currently, qualified film, live theatrical, and television production companies enjoy the ability to deduct 100 percent of their production expenses in the year such expenses are incurred.

The HITS Act would also incentivize the production of new sound recordings at a time when music creators still need help overcoming the financial fallout resulting from the COVID-19 pandemic. With tours canceled and gigs indefinitely delayed, many creatives are left without access to their traditional revenue streams. Congress continues to address the unequal impact felt by the creative workforce through enhanced unemployment insurance, extending Small Business Administration loan programs, and creating targeted relief programs for independent venues. 

While these relief programs are a welcomed resource for the music ecosystem, Congress must continue to provide targeted assistance for the most vulnerable creators – independent artists. That is why the Recording Academy collaborated with policymakers on finding a solution that encourages and incentivizes the creative workforce to safely return to the studio.

Music producers & creators were among the first out of work as tours were canceled, venues shuttered, & studio sessions were postponed.

The HITS Act will make things just a little easier for the small, independent creators who make the music we love!

▶️ https://t.co/lZnvgzUNvd pic.twitter.com/wWwEelPe6W

— Rep. Linda Sánchez (@RepLindaSanchez) March 16, 2021

The Academy applauds the reintroduction of the HITS Act. “A year after the pandemic brought social distancing and shutdowns, independent music creators have been hit hard, which is why the Recording Academy is pleased to support the reintroduction of the HITS Act,” said Harvey Mason jr., Chair and Interim President/CEO of the Recording Academy. “This bipartisan bill will change the tax code – putting music creators on a level playing field with other creative industries – helping thousands of independent creators get back on track by incentivizing music production, creating new opportunities and revitalizing the music economy.  We thank Senators Feinstein and Blackburn and Representatives Sanchez, Estes, Chu, McCaul, DelBene, and Napolitano.”

“Like families and workers across the country, music producers and creators in each of our communities have been hit hard by this pandemic. In fact, they were among the first out of work as tours and festivals were canceled, venues shuttered, and studio sessions were postponed,” said Congresswoman Sánchez. “Today, I'm proud to re-introduce the HITS Act. This bill will make things just a little easier for the small, independent creators that make the music we often turn to during hard times like this."

“The pandemic has made it harder for many people to make ends meet, including musicians and music producers who have been among the hardest hit because of bans on large gatherings,” said Senator Feinstein. “Our bill would allow independent musicians, technicians and producers to deduct their production expenses in the same year they occur, rather than forcing them to spread those deductions out over several years. This change would help keep music creators afloat until we can again gather and listen to them in person.”

The pandemic has made it difficult for independent musicians, technicians and producers to make ends meet without being able to play live. We just introduced bipartisan legislation to help them recover. More information here:https://t.co/fzPc1iJGtx

— Senator Dianne Feinstein (@SenFeinstein) March 16, 2021

“The music from Nashville strikes a chord with folks across the nation,” said Senator Blackburn. “However, the unique burdens faced by the arts community forced many to stop writing, performing, and producing altogether. The HITS act will provide targeted tax deductions to support our musicians and allow them to get back to work.”

“As for so many Americans, shutdowns and social distancing brought havoc for small recording artists over the past year,” said Congressman Estes. “The bipartisan HITS Act will help thousands of independent music creators around the country by providing common sense tax savings on certain expenses – giving this industry the targeted relief it needs as our nation recovers.”

Championed by the Recording Academy, the legislation is supported by many members of the music ecosystem, including the American Association of Independent Music (A2IM), SAG-AFTRA, Music Artists Coalition, Artists Rights Alliance, Recording Industry Association of America, National Music Publishers Association, SoundExchange, Global Music Rights, SESAC, National Independent Venue Association, National Independent Talent Organization, Future of Music Coalition, Digital Media Association, Nashville Songwriters Association International, ASCAP, BMI, Gospel Music Association, Christian Music Trade Association and Songwriters of North America.

As the only organization representing all music creators, the Academy thanks these members of Congress for standing with struggling creators by reintroducing the HITS Act, and looks forward to the passage of this landmark relief bill. 

Take Action: Ask Congress to Pass the HITS Act

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Updated: Biden Admin. Announces PPP Changes biden-announces-creator-friendly-changes-paycheck-protection-program

Updated: Biden Administration Announces Creator-Friendly Changes To The Paycheck Protection Program

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The Biden Administration announced welcomed changes to the Paycheck Protection Program, increasing aid to music creators
Matthew Bango
Advocacy
Feb 24, 2021 - 11:45 am

UPDATE: This article, originally posted on Feb. 24, 2021, has been updated with new information for music makers and music small businesses based on the recent passage of the American Rescue Plan, and new regulatory updates by the Small Business Administration.  Importantly, effective March 3, self-employed individuals (including independent contractors, gig workers, and sole proprietors) will be eligible for an increased PPP loan amount based on their gross income. Per the SBA, this change is limited to applicants who had yet to be approved for a loan as of March 3.

Additionally, per the American Rescue Plan, eligible businesses may now apply for both a PPP loan and a Shuttered Venue Operators Grant (SVOG). Previously, potential applicants for SVOGs were prohibited from applying for assistance from programs. Under the new law, the PPP loan will offset the potential amount of an SVOG. The SVOG program will open for applicants on April 8, and PPP remains open for all small businesses until May 31.

Please contact advocacy@grammy.com with any questions.

The Biden Administration and Small Business Administration (SBA) announced new changes to the Paycheck Protection Program (PPP) on Monday, February 22, which will result in increased access to essential financial relief for the creative workforce.  Formed as part of the CARES Act, the PPP has enjoyed tremendous bipartisan support due to the program’s ability to quickly deliver relief to qualified small businesses, including sole proprietors and independent contractors. The PPP administers favorable loans to eligible borrowers through participating financial institutions, and many of the loans convert to grants if they are primarily used to fund payroll expenses.

While the relief program is appreciated and utilized by the music community, many struggling creatives were originally left with either limited or no access to the available loans administered by the SBA. But starting today, the SBA attempts to correct these inequities and other longstanding programmatic flaws by implementing new guidance.

Today, @POTUS announced new steps to increase #EquitableAccess of the #PaycheckProtection Program for America’s smallest businesses. Watch this @WhiteHouse video for an important update: https://t.co/vmPm9ZKyTf

— SBA (@SBAgov) February 22, 2021

Many creators will be directly impacted by the SBA’s updated funding formula for sole proprietors, independent contractors, and self-employed individuals. Previously, the PPP loan was calculated by multiplying an applicant’s payroll expense by 2.5, resulting in a much lower loan for sole-proprietors compared with larger businesses. Under the updated guidance, the SBA will calculate the loan amount for these types of workers by using gross income instead of net profits, resulting in larger payments for many members of the music ecosystem. This change is effective March 3, and applicable to applicants who have yet to be approved for a PPP loan in 2021. The Recording Academy has consistently advocated for this change since March, 2020, which will help make PPP loans more responsive to the needs of self-employed individuals.

From the program’s inception, many minority-owned businesses and businesses located in underserved communities faced difficulty accessing loans due to a lack of a formal pre-existing relationship with large financial institutions. To correct that program, the SBA has earmarked $1 billion in funds for low- and moderate-income areas. While this is a step in the right direction, the Biden Administration and the SBA must continue to increase outreach and assistance to these underserved communities and minority-owned institutions.

The SBA also prioritized getting relief to businesses with 20 employees or less, which started on February 24 and concluded on March 9, 2021. Previously, these businesses struggled to secure PPP funds due to the overcrowded lending portal. Understanding that many businesses in the music ecosystem are extremely small operations, the Academy has long advocated for the SBA to prioritize the delivery of financial relief to the smallest of businesses, many of whom are on the verge of collapse due to the pandemic’s enduring impact.

Starting today, the Biden-Harris Administration is opening an exclusive 14-day PPP loan application period for companies and nonprofits with fewer than 20 employees. Head to https://t.co/slFWiCx2W0 to learn more. pic.twitter.com/zVzm0xNn1q

— The White House (@WhiteHouse) February 24, 2021

Other changes in guidance include the elimination of borrowing restrictions for business owners with non-fraud felony convictions, the removal of the disqualifying federal student loan debt delinquency factors, and the expansion of the program to qualify all lawful U.S. residents. Learn more about the application process on the SBA’s website. 

While many of these promising changes will positively impact the entire music ecosystem, Congress understood the need of providing additional relief and passed President Biden’s “American Rescue Plan” as a result. The relief package addresses the many complex challenges facing creators by extending unemployment assistance, appropriating funds to help small businesses survive, and investing in the National Endowment for the Arts (NEA). The Academy applauds President Biden and Congress on the passage of this landmark bill, and looks forward to collaborating on an equitable and seamless implementation of these critical relief programs, many of which will greatly assist the entire music ecosystem.

Editor’s Note: This article was originally published in February 2021 and has been updated to reflect the passage of the American Rescue Plan end of the 14-day exclusive application window.

Read More: Billboard: How The Recording Academy And Its Allies Scored Big Wins In COVID Relief Package

National Arts Action Summit

National Arts Action Summit

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National Arts Action Summit Represents Creators recording-academy-represents-music-creators-national-arts-action-summit

Recording Academy Represents Music Creators At National Arts Action Summit

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Americans for the Arts' National Arts Action Summit touched on how to fairly compensate music creators and streamline the visa process for artists traveling to the United States
Morgan Enos
Advocacy
Apr 15, 2021 - 2:23 pm

Fairly compensating music creators is a hot-button issue in the streaming era. Luckily, in 2021, some of the best minds are engaged in this conversation.

Last week, Americans for the Arts, a nonprofit organization that aims to promote the arts in the United States, held its annual National Arts Action Summit as a virtual event. The four-day summit featured a diverse slate of panelists and the Recording Academy was represented by  Todd Dupler, the Academy’s Managing Director, Advocacy & Public Policy, and Michael Lewan, the Academy’s Director of Government Relations.

Also participating in the event were Reps Alma Adams (D-N-C.), Suzanne Bonamici (D-Ore.), Debbie Dingell (D-Mich.), Derek Kilmer (D-Wash.), Grace Meng (D-N.Y.), and Chellie Pingree (D-Maine), Annette Bening (Actress), Brian Stokes Mitchell (Actor/Musician), Mitch Glazier (Chairman and CEO, RIAA), and Kevin Erickson (Director, Future of Music Coalition), among others.

https://twitter.com/Americans4Arts/status/1380611435189899265

Our final National Arts Action Summit session is a fascinating & important discussion on supporting cultural exchange and visas for international artists with Camille Zamora of @singforhope, Todd Dupler of @RecordingAcad, and artists @CristinaPato + @iamlesterlynch. #ArtsAdvocacy pic.twitter.com/m5zr2PIxIT

— AmericansForTheArts (@Americans4Arts) April 9, 2021

On Tuesday, April 6, Lewan gave music creators a voice during his panel, which was titled "Expanding Arts and Technology," and had a robust conversation with Erickson of the Future of Music Coalition and Glazier of RIAA. Lewan examined how music licensing laws impact how music is distributed across technological mediums and how unfair loopholes can result in artists and performers not being compensated for AM/FM radio play. The Recording Academy has long championed policies to establish a performance right for sound recordings on AM/FM radio, and continues to lead the fight in the current Congress.

Meanwhile, Glazier stressed the need to modernize the DMCA and detailed current efforts to increase payment for use of music on digital platforms. The panel implored attendees to contact their lawmakers and ask them to stand against the Local Radio Freedom Act (LRFA)—a misleading resolution pushed by the radio lobby that denies artists the right to receive compensation for their music played on radio.

On Friday, April 9, Dupler’s panel, titled "Supporting Cultural Exchange and Visas for International Artists," included artist/writer/educator Cristina Pato, Camille Zamora of Sing For Hope, and Lester Lynch of Operatic Baritone. The four discussed the cruciality of cultural diplomacy in promoting global harmony and goodwill.

https://twitter.com/GRAMMYAdvocacy/status/1379568179798700033

.@RecordingAcad is proud to join @Americans4arts in the fight for creators’ rights! 🎶

🎤 All artists should be able to earn fair pay for their work, especially on AM/FM radio. #ArtsAdvocacy https://t.co/2gFlNsxe2x

— GRAMMY Advocacy (@GRAMMYAdvocacy) April 6, 2021

To this end, Duper underlined the need to increase funding for cultural exchange programs at the State Department and to streamline the visa process for artists traveling to the United States through passage of the Arts Require Timely Service (ARTS) Act. Pato, Zamora and Lynch gave real-world testimony as artists, touching on cultural exchange and how visa delays have hampered them in various regards.

The Recording Academy is a proud of the National Arts Action Summit, which has long given artists and organizations a platform to advocate on behalf of all music creators and form coalitions of support for creator-friendly legislative action—whether it be germane to digital media or visa reform for artists as discussed this year, or to many other top priorities affecting the arts communities like taxes, NEA funding, and arts education. The Academy thanks the Americans for the Arts for hosting this illuminating panels, and looks forward to joining their in-person National Arts Action Summit next year. 

More information on the National Arts Action Summit can be found here.

Shuttered Venue Operators Grant Program Opens For Applicants

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Some of the content on this site expresses viewpoints and opinions that are not those of the Recording Academy. Responsibility for the accuracy of information provided in stories not written by or specifically prepared for the Academy lies with the story's original source or writer. Content on this site does not reflect an endorsement or recommendation of any artist or music by the Recording Academy.