While we’re definitely not going into the nitty-gritty about the new $2 trillion stimulus package that is making its way through the US government right now, it appears that, for many businesses and members of the public, financial assistance is on the way. And in regards to how this affects the future of the thousands of cinemas around the country, the National Association of Theater Owners (NATO) feels that this stimulus is going to ensure that the industry survives to live another day post-COVID-19 (coronavirus).
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In a statement released by NATO (via Deadline), the organization says that the massive stimulus package that will not only ensure that everyday Americans receive financial assistance and protection during this time of economic hardship, but it also means that film exhibitors will be able to survive during a time when they’re seeing absolutely no money coming in.
The statement said, “With this agreement, movie theaters can look forward with confidence to re-opening and once again serving their communities when this crisis has passed. While some details remain to be worked out, the broad provisions of the agreement help movie theaters and their workers in so many ways.”
The stimulus is going to help theaters in a variety of ways, including all the funds and loans that are guaranteed to small businesses, as well as protections and coverages for the workers that find themselves with no income.
Ultimately, NATO believes the package ensures that “movie theaters can get through this crisis confident in being able to re-open.”
There’s no timetable for when cinemas in the US will reopen. Many are predicting that this crisis will extend through the month of May and into the summer, so it could be a very long time, indeed.
Here’s the full statement from NATO:
We applaud the bipartisan agreement reached in the Senate today to provide relief to movie theaters, their employees, and so many other public-facing industries that have had to close their doors due to the COVID-19 pandemic. With this agreement, movie theaters can look forward with confidence to re-opening and once again serving their communities when this crisis has passed.
While some details remain to be worked out, the broad provisions of the agreement help movie theaters and their workers in so many ways.
–A $454 billion loan guarantee fund provides access to capital allowing movie theaters and other businesses to pay their fixed costs while they are unable to generate revenue through normal operations.
–Expanded SBA programs that will allow small businesses – the vast majority of theater companies – to do the same, with several categories of expenses eligible for loan forgiveness.
–Provisions allowing deferral of payroll taxes, expanded opportunity for loss carrybacks for businesses, and technical corrections regarding qualified improvement property.
–Employee retention tax credit for businesses that keep people on the payroll despite closures or that see large sales losses.
— Up to four months of direct aid to workers through extended and expanded unemployment insurance, including increases in the weekly dollar amount and eligibility for part-time employees.
— Advanced tax deductions to workers payable now.
With this aid, movie theaters can get through this crisis confident in being able to re-open, knowing their vital, trained workforce is able to weather this pandemic and have jobs waiting for them when it is safe to reopen.
We are grateful for the work of Congress and the Administration and those, in and out of the entertainment industry who have supported our efforts on behalf of this industry that is so central to our culture and civic life. We look forward to its quick passage in the House and signature by the President.