AGMA Joins SAG, WGA & ASCAP In Letter To Congress To Update CARES Act

By Francisco Salazar

The American Guild of Musical Artists (AGMA), alongside nearly 50 other entertainment industry unions and organizations, sent a joint letter to Congress to update the CARES Act.

In the letter directed to Speaker Pelosi, Leader McConnell, Leader McCarthy, and Leader Schumer, union leaders summarize the ways the CARES Act has fallen short in assisting members of the entertainment community and requests that these flaws be remedied in an updated CARES Act COVID-19 relief package.

The letter notes “Given the unique nature of our industry, many in our profession work from project to project and gig to gig, not only in multiple jobs but in various capacities. As a result, creators often find themselves working as employees receiving W-2 wages and as independent contractors (or otherwise self-employed) receiving 1099 income for performances, royalties, and other services. Unfortunately, implementation of the Pandemic Unemployment Assistance program (PUA) has overlooked workers with mixed income. In almost all cases that we see in every state, a minimum amount of W-2 income disqualifies a self-employed individual for PUA and significantly lowers the amount of assistance they  receive.”

The letter also states, “Second, the CARES Act does not recognize the full scope of small business arrangements prevalent within our industry. As the PUA mixed income issue and the actual operation of our industry make clear, the Paycheck Protection Program (PPP) should be sure to allow payments to self-employed individuals, including independent contractors. The workers in our industry cannot afford to be shut out of federal assistance on such a technicality and any future plan should recognize self-employed individuals as eligible payroll participants.”

“SBA’s PPP guidelines on eligibility criteria and requirements for the self-employed are overly burdensome and restrictive. SBA requires a 2019 Schedule C as the principal document to determine eligibility and loan size, even though the IRS delayed the 2019 tax year filing deadline to July 15, 2020.”

The letter comes days after the Metropolitan Opera’s stage manager and director launched a petition to support the arts.

The new letter was signed by such organizations as the Writers Guild of America, ASCAP, Actor’s Equity, Screen Actors Guild, and American Guild of Musical Artists.

You can read the full letter here

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