Emmis Broadcasting To Receive $4.8 Million Loan Courtesy Of CARES Act

Story by Inside Radio

At least one commercial radio broadcaster has secured money from the federal government’s CARES Act, which aims to provide financial assistance to businesses and individuals affected by the COVID-19 pandemic.

Indianapolis-based Emmis Communications, which owns radio stations in Indianapolis and New York, is getting $4.753 million under the Paycheck Protection Program, according to a recent filing with the Securities and Exchange Commission.

The lender is STAR Financial Bank, which is based in Indiana and has more than $2 billion in assets.

The PPP, which is administered by the Small Business Administration (SBA), provides money to small businesses so they can pay up to eight weeks of payroll costs, including benefits, according to the U.S. Treasury’s website. The money can also be used for paying rent, utilities and interest on mortgages. If the right conditions are met, much of the loan will be forgiven. Emmis is one of the lucky applicants. As of today, the $350 billion program is out of money — and it’s not immediately clear when the funds might be replenished.

Meanwhile, the Corporation for Public Broadcasting says in a news release that the CPB Board of Directors has unanimously approved a plan to distribute $75 million in emergency funding to public media courtesy of the CARES Act.

That money, which the CPB says will ensure “the preservation of small or rural stations,” will be split evenly ($37.5 million each) between radio and television, according to a memo to general managers written by CPB CEO and President Pat Harrison.

A list of the recipients — and their grant amounts — is available on the CPB website. https://www.cpb.org/aboutcpb/financials

The CPB says it will work “expeditiously” to distribute the funding once it’s received from the U.S. Treasury.

According to the breakdown outlined in Harrison’s memo, a total of 398 public radio stations will receive $75,000 each, for a total outlay of $29.85 million. The remaining $7.65 million will be divided up amongst 206 other grantees that are characterized as “small” or “rural.” Those stations will receive an additional $37,136 in addition to their initial $75,000.

In total, 192 stations will receive $75,000 each, while 206 others will receive $112,136.

“Public media stations across the country are working harder than ever, and under extraordinary circumstances, to inform and educate the American people,” Harrison says in the release. “Local stations are providing vital information about the COVID-19 pandemic and finding innovative ways to deliver curriculum-based educational programming to homebound students, all while facing declining non-federal revenue. I want to thank Congress for their strong, bipartisan support of public media, and the advisory group which worked so quickly to find a way to distribute these funds in an equitable manner.”