Information on Federal Coronavirus Emergency Relief for the Literary Community

Last updated on April 15, 2020

The coronavirus crisis has had a profound impact on the literary community and the book and publishing economy. In Washington, two major relief laws have been enacted – the Families First Coronavirus Response Act and the CARES (Coronavirus Aid, Relief, and Economic Security) Act – which have the potential to help writers, small bookstores, publishers. , literary organizations and others. in our sector through the economic crisis. At PEN America, we’ve put together this resource guide explaining some of the programs of these bills that could support our members and other members of the literary community as we go through these difficult times.

To note: None of this advice should be construed as legal advice.

The National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH) each received $ 75 million to provide emergency grants and support to arts organizations during the COVID-19 pandemic. 40 percent of these funds will be transferred to state arts agencies for disbursement at their discretion. The NEA has released details of their grant programs here and information for current laureates in This declaration. Additional updates will be posted on their website.

The Small Business Association (SBA) can offer relief to small bookstores, media organizations (profit and nonprofit) and publishers. Organizations should check with their lenders about their eligibility for the following programs, as the CARES Act has increased the number of banks allowed to handle SBA guaranteed loans. For more details on the eligibility requirements for these programs, please see this table prepared by the National Council of Associations.

Here are two key programs that could provide financial lifelines for members of the literary community:

• The SBAs Economic disaster loans (EIDL) are available for small businesses in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The CARES Act allocated an additional $ 562 million to ensure that the SBA has the resources to provide these loans. For more information, visit the SBA’s EIDL site.
• The CARES Act also added $ 350 billion to the SBA Paycheque Protection Program. The program will guarantee loans of up to $ 10 million with a maximum term of 10 years and interest rates of up to 4% for businesses with less than 500 employees. Some businesses will be eligible for a loan forgiveness if they keep their payrolls for eight weeks at normal salary levels. To learn more about eligibility and procurement details, please visit this page by the Federal Register or this FAQ published by the United States Chamber of Commerce.

In addition to direct financial assistance, the two bills passed by Congress also increase existing support mechanisms, including unemployment insurance, sick leave and family medical leave.

Unemployment insurance. The Families First Coronavirus Response Act has earmarked $ 1 billion to distribute to states for unemployment benefits. It includes a provision that expands the eligibility of freelancers and workers in the odd-job economy. However, each state has its own procedures and requirements, so the qualifications and amounts vary. For more information on unemployment benefits and application processes for members of the arts community, please see this flowchart prepared by the AFL-CIO Arts, Entertainment and Media Industry Coordinating Committee.

Sick leave and family sick leave. The Families First Coronavirus Response Act requires that small businesses (classified as employers with less than 500 employees) offer extended sick leave and family sick leave for illnesses related to COVID-19, as well as to allow additional leave for parents due to school closures. For more information on the requirements for paid leave, please see this page from the US Department of Labor. For more information on the implementation of paid leave protocols, please see this FAQ from the US Department of Labor.

While it may not provide immediate support, the CARES Act has also provided $ 1.5 billion to Economic Development Administration (EDA) to help revitalize the economic priorities identified locally and industries affected after the pandemic ends. In previous funding programs, the EDA has also received $ 20 billion in local and private investment to support more than 100,000 American jobs affected by the coronavirus. Local media, bookstores and publishers can be considered “affected industries” based on their local economic footprint and the priority of their lawmakers in the wake of the COVID-19 crisis.

Finally, if you or someone you know is a writer with acute financial needs, we encourage you to apply for the PEN America Writers Emergency Fund.