Many production companies, as well as agencies, received loans through the Paycheck Protection Program.
The Apatow Company, The Gersh Agency and Verd Talent & Literary Agency of Judd Apatow were among the Hollywood companies that received money from the federal government’s Paycheck Protection Program, according to a list released Monday by the Small Business Administration. .
Gersh received a loan worth between $ 5 million and $ 10 million, and Verve received a loan worth between $ 350,000 and $ 1 million. Another agency, the Performing Arts Agency, received a loan of $ 2- $ 4 million, while Brillstein Entertainment Partners received a loan of $ 1 million- $ 2 million, while The Apatow Company received a loan worth $ 150,000- $ 350,000 (a source says the Apatow loan was $ 160,000 and was repaid).
Elsewhere, the Entertainment Industry Foundation received a loan of $ 1 million to $ 2 million, while the chapter of the British Academy of Film and Television Arts in Los Angeles received a loan of between $ 150,000 and $ 350,000. The International Academy of Television Arts and Sciences, which awards the International Emmy Awards, received a loan of $ 150,000- $ 350,000, with the Tribeca Film Institute and the Grammy Museum Foundation also receiving loans. The Time’s Up Foundation received a loan worth $ 350,000- $ 1 million.
The American Film Institute, the SAG-AFRA Foundation, and the Motion Picture & Television Fund also received loans.
Production companies, many of which had to suspend projects during the pandemic, also received loans, with The Jim Henson Company receiving a loan of $ 2 million to $ 5 million, and Village Roadshow Entertainment, Irwin Winkler’s Winkler Films, Weird eye Scout Productions producer, Alex Gibney’s Jigsaw Productions, Glen Keane Productions, New Regency Productions and others on loan.
In the esports world, Faze Clan received a loan of $ 1 million to $ 2 million, and Fandango Atom Tickets competitor also received a loan of $ 1 million to $ 2 million. The TCL Chinese Theater also received a loan of between $ 350,000 and $ 1 million, while Sean “Diddy” Combs Revolt television channel received between $ 1-2 million.
PPP was established in late March as a lifeline for small businesses shaken by the coronavirus blockade that was making small businesses struggling to stay afloat. The now forgivable $ 669 billion loan program was intended to help liquidity-strapped companies meet payroll.
Before the list was released, Hollywood business manager John McIlwee explained why the decision to take PPP money should not be taken lightly.
“PPP’s goal is to keep the employer-employee relationship intact so that when the economy comes back online, companies are not fighting to hire people they let go,” he said. THR. “This applies to Hollywood companies and there are positive and negative programs in these programs. If you are a high net worth star on the A list, you don’t have to take money from the government to cover the wages of your two assistants. All the conversations I have had with my clients have not been ‘Could I receive financing. It is ‘Should I get funding. ‘”
Until now, Hollywood entities that take PPP money has remained largely a mystery with a few exceptions. Digital media company Cinedigm received $ 2.1 million from the program, according to SEC documents. (Cinedigm is a publicly listed company on NASDAQ.)
On April 23, the United States Treasury Department updated its guidelines for the PPP initiative and urged companies that have access to alternative funds to reconsider whether they really needed the money. The companies have received until May 14 to repay the loan money without asking questions.
Treasury Secretary Steven Mnuchin warned that not only will PPP loans that exceed $ 2 million be audited, but also any business that borrows money through the program before the loans are forgiven.
McIlwee, which represents a stable group of high-profile industries, advised clients to consider the ethics of taking money from the government.
“What happens if a million dollar revenue stream is found to have received federal support? That can backfire on a large public relations perspective and more than offset any kind of government reimbursement,” he continued. “But if you have a small production company or are a vendor and you don’t have financial security, if you have the option to apply for PPP to keep your employees on the payroll and your business running, that’s a fantastic thing, and [is] what the program was designed for. It is perfectly legal to accept money. But there is a danger of abuse here because even the actors, writers and directors with loans and a couple of employees could take advantage. “
