The manufacturing businesses of Judd Apatow, Jim Henson Co., and a clothing company affiliated with music artist Kanye West were among the companies approved for a government loan program to reduce layoffs during the pandemic.
The grant announced Monday by the Small Business Administration was part of the Paycheck Protection Program, or PPP. As part of the program, companies will have their loans waived if they employ workers for at least eight weeks after receiving the grant.
The money helped many agencies, production companies, visual effects shops and others in the entertainment business to stay afloat as the new coronavirus has devastated the industry. As government officials worked out appropriate safety measures, the industry struggled to adapt to the health crisis. Cancel or postpone concerts and production stops. Many companies are laying off employees or cutting their salaries due to the uncertainty of the market.
Hollywood-based Jim Henson Co., creator of the Muppets, said a $ 2 million PPP loan helped him keep 75 employees when the studio closed critical businesses like live-action productions.
Apatow Co. was one of several Southern California entertainment companies approved for credit. The company said it received $ 160,000 but did not use the money and repaid the loan. New Regency Productions has been approved for a $ 1 million to $ 2 million PPP loan that the government said will help save 50 jobs. And Village Roadshow Entertainment Group USA Inc. kept 26 jobs on a $ 350,000-1 million loan, according to government figures.
Talent agencies that received PPP loans included the Gersh Agency of Beverly Hills and LA-based Verve Talent and Literary Agency. Gersh received a $ 5 million to $ 10 million loan to keep 250 jobs. Verve received $ 350,000 to $ 1 million and 68 jobs, according to government figures. The agency said the loan enabled her to restore the cut salaries.
COVID-19 has also harmed some entertainment companies that rely on it Advertising income. Culver City-based Jukin Media, which licenses user-generated entertainment, said it applied for and received a $ 2.2 million loan to help cover labor costs and avoid laying off its 127-strong workforce.
“Like all advertising companies, we have seen a significant decline in this source of income due to the pandemic, despite modest profits on the licensing side of our business,” Jukin said in a statement. “As a medium-sized, independent company, we have largely saved jobs because we have secured this help.”
Loans were also given to several exhibition companies, including the legendary TCL Chinese Theater and ticket provider Atom Tickets.
Various charitable groups such as the Grammy Museum Foundation, the Motion Picture & Television Fund, the SAG-AFTRA Foundation, and the Walt Disney Family Museum in San Francisco have also received federal loans.
Some of the loan applicants raised their eyebrows.
West La Palma company, Yeezy, was approved for a $ 2 million to $ 5 million PPP loan, which saved 106 jobs. July 4th west tweeted he ran for president of the United States.
A representative from West did not immediately respond to a request for comment.
Media Matters for America, a liberal media watchdog group that promoted advertising boycotts against conservative presenters at Fox News, received a $ 1 million to $ 2 million loan to keep 64 jobs.