Thirteen members of Congress, including Mike Turner, R-Dayton, are asking the SBA for an explanation and a new interpretation.
“We were very concerned to learn that the Small Business Administration recently interpreted the law and declared that air shows ‘are a form of live entertainment,’ but ‘air show operators do not qualify as live venue operators or promoters nor constitute as a performing art,’” the letter said.
The letter added: “This flawed interpretation excludes air shows and endangers local venues for hundreds of air show operators in our congressional districts.”
The federal Paycheck Protection Program (PPP) helped keep many small businesses afloat during the pandemic. But other entertainment venues, theaters, museums and other draws for tourism found themselves still in need of financial help.
Congress passed a law in December — the Economic Aid Act, which established the Shuttered Venue Operators Grant program, distinct from the PPP — in an attempt to answer that need. This program was officially launched last Friday to provide grants to stage and venue operators.
A section of the grant specifically identifies “live venue operators or promoters” as eligible for funds.
But the program was intended for the performing arts industry, venues with a “physical footprint,” Grevious said.
“The last word I got was the SBA has made a ruling that the performing arts industry is the only industry eligible for this money,” Grevious said Wednesday.
John Cudahy, president of the International Council of Air Shows, spoke with two SBA representatives on the matter. One of them told Cudahy that air shows are not considered performing arts events.
However, Cudahy counters that air shows have referred to pilots as “performers” for more than 100 years. He said he sent the SBA historical books and papers documenting that. He further contends that the legislation does not and never intended to exclude air shows from funds.
“We meet, I think, both the intent and the specific language of the legislation,” Cudahy said.
He said he never heard back from the SBA, which he called “disheartening.”
“Not much of this makes sense to me,” Cudahy told the Dayton Daily News.
SBA spokeswoman Andrea Roebker confirmed that air shows do not qualify for aid.
“Air shows do not qualify, as the live venue operator or promoter definition under the Economic Aid Act requires an entity to either put on performing arts events at qualifying venues or sell advance tickets to performing arts events at qualifying venues,” Roebker said in an email. “While an air show is a form of live entertainment, in SBA’s opinion it does not constitute a performing art. As such, air show operators do not qualify as live venue operators or promoters.”
The congressional letter is addressed to Isabella Casillas Guzman, SBA administrator.
“In a typical year, these small businesses operate for the special purpose of hosting these community events and have a collective $887 million economic impact on nearly 300 communities,” said the letter to Guzman, which is dated March 22.
The pandemic forced the closure of the Dayton Air Show last year, and continuing concerns about COVID-19 are forcing dramatic changes to this year’s event.
No show means no revenue, Grevious noted. “We’re a small business, and you lose a year’s income, and it’s pretty rough.”
This year’s show will cut attendance, offer no static aircraft displays and establish a new format that allows guests to park tailgate style to watch performing planes.
The show expects to have about 4,000 cars a day July 10 and 11 at the Dayton International Airport.
Credit: HANDOUT
Credit: HANDOUT
With six passengers per car, that could mean up to 24,000 guests a day — well below the average 60,000 to 70,000 guests milling about on foot in previous years, Grevious has said previously.
The decision to go to a tailgate-style model had nothing to do with lack of funds and everything to do with health and social distancing health orders, he said.
The U.S. Air Force Thunderbirds will headline this year’s Dayton Air Show.
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