By K.D. Norris
People who know the local independent music scene know there are not two more different venues than Grand Rapids’ Pyramid Scheme and Spring Lake’s Seven Steps Up — at the first, you’ll likely loose your voice screaming for bands like The Beths or Fruition; at the second, you’ll quietly chill to the sounds of Darlingside.
But both venues, along with more than 1,000 “independent” music clubs and promoters across the county, are trying to find a little power in numbers — and help themselves survive the crippling impact of COVID-19 — by joining the newly established National Independent Venue Association.
While independent venues and promoters are small businesses, nationwide, the estimated direct annual impact they provide to their local communities nears $10 billion, according to the National Independent Venue Association (NIVA). In addition to supporting employees and artists who are dependent upon live music for their livelihoods, the industry serves as a “magnet and financial engine for local economies … for every dollar small venues generate in tickets sales, area restaurants, hotels, and retail establishments realize $12 in revenue.”
But that same group also reports that 90 percent of members informally predict they will not be able to reopen if there is no financial support and the shutdown extends to six months.
To find out what is the current mood, and long term outlook, of the independent music industry, here in West Michgian and across the country, WKTV visited the eerily empty rooms of Pyramid Scheme and Seven Steps up last week.
What we found was a bleak present with stages dark and employees on unemployment, but an unclear future unless venues can get clarity on when and how they can reopen, get some some government help.
The problems started even before the two venue were forced to close their doors to the public, back in mid-March.
“It has been a nightmare couple of months, as you an imagine, sort of cascading from March,” Tami VandenBerg, co-founder and co-owner of Pyramid Scheme, said to WKTV. “The first sign of huge trouble was when we heard South by Southwest (annual independent music festival in Austin) might be cancelled. Myself and other members of my team go down there. That is a massive event for our industry. … That was a big red flag.”
And then came not only musicians cancelling but national and state restrictions on certain businesses where people would congregate.
“It was devastating to layoff all our staff and cancel all our shows,” VandenBerg said, trying to count how many shows were cancelled. “It was brutal. Spring is usually a really busy time for us. … it is clear this is an epic mess.”
Michelle Hanks, who with husband Gary Hanks, own and manger Seven Steps Up, also saw the train wreck coming and could do nothing about it.
“It came to a crashing halt on March 14, that’s when we got the call,” Michelle Hanks said to WKTV. “Our last show was March 8. … Most of the shows have not been cancelled, they have been rescheduled. We just don’t have dates for them. … We are already discussing rescheduling for the third time, in some cases.”
In the case of Seven Step Up, Michelle Hanks said “probably going into the neighborhood of 45 to 50” shoes have been delayed or lost all together. At Pyramid Scheme, VandenBreg simply pointed out a busy spring schedule would usually see bands in four of five nights a week.
“Part of the issue with this industry is that it is not just Seven Steps Up, it’s — I loved one of the ways somebody said it — we are an ecosystem,” Michelle Hanks said. “We are an ecosystem of independent venues and independent artists. … The artists really need to tour across the United States, not just here and there.”
Financial losses mount, but unified action could help
Small music venues, like large concert venues and neighborhood brew pubs, are suffering financial hardship partly due to a “first to close; last to open” scenario — coupled with no concrete date of return.
According to supplied material, independent music industry magazine Pollstar estimated a $9 billion loss in ticket sales alone — not counting food and beverage revenue — if venues remain closed through the end of the year.
“We have been hit, already hit, extremely hard,” VandenBerg said. “And we will be one of the last places to reopen, as I have seen in the Governor’s plan. We’ll be able to open our front bar sooner, with limited capacity and protective gear. … but in term of live music, that is one of the last things that is going to open.”
“The big challenge is the uncertainty,” Gary Hanks said. “We are postponing and putting dates put there, after in the fall and winter, but all of us — agents, artists, venues — don’t really know if those are going to happen. … We may be told we can reopen, but we may be told there are going to be so many restrictions on that, in terms of audience size, that it, just financially, can’t work.”
Both VandenBerg and the Hanks agree they see some hope in their joining the NIVA, and the group’s work in Lansing and Washington, D.C., to request emergency governmental relief they can actually use.
In general, the NIVA is seeking modifications to small business loans and the Payroll Protection Program (PPP), tax relief, mortgage and rent forbearance, continued unemployment insurance for employees and “guidance on how to reopen safely when the time comes,” according to supplied material.
NIVA wrote a letter to Congress in late April advocating for “targeted legislative and regulatory assistance.” In part, the letter read:
“Without your help, thousands of independent venues will not survive to the day when our doors can open to the public again. While we have no income, we do have essential employees, employee benefits, debts with personal guarantees, rents or mortgages, utilities, insurance, local, state and federal taxes, and the massive burden of ticket refunds for more than 100,000 canceled shows due to COVID-19.”
One area of advocacy is to have ticket refunds become allowable as business losses — Seven Steps Up has given more than $4,000 in refunds and, “for us, that’s a killer,” Gary Hanks said.
A key group effort is waiving the PPP requirement for loan forgiveness to be contingent on employee retention if companies have no work to offer employees for several months — currently for loan forgiveness business have to bring people back to within a few weeks.
“One of the things that is a challenge for us, and for other small venues like us, is we can’t just bring our employees back for one show,” Michelle Hanks said. “They will loose their unemployment, at least for that week. … We have to be able to get up and do a regular number of shows for it to make any kinds of sense for anyone.”
Seven Steps Up usually has 7-9 part-time employees for 132-seat sold-out shows.
Pyramid Scheme “on a really busy night, a sold-put night, when we’ve got 420 folks in the back (in the concert room) and another 200 up front (in a bar area), those are our capacities, we can have 15 people working, from sound to security to bartenders,” “VandenBerg said. “When I think about when we will be able to get back to that (level of employment), I just don’t know. It’s really heartbreaking.”
A hopeful future, with a little help from their friends
Both VandenBerg and the Hanks said despite their current and short term problems, they are hopeful.
“In the midst of all this depressing uncertainty, the formation of NIVA has at least given us a glimmer of hope that our nine plus years of blood, sweat, and tears will not go down the drain,” Michelle Hanks said. “Out of crises, good things can sprout up.
“Independent venues have been so independent, fiercely independent, of each other. We don’t typically talk about anything,” she said. “So bringing all the venues together, we are talking about developing best practices for how we deal with things like merch areas, green rooms, queuing people into the venues, security. … That’s been really, really great. But in terms of what they are doing nationally, for us, there is a huge campaign going on right now to contact our elected officials.”
But support the community, from small venue music fans — the “scream at the top of your lungs” crowd or the “kick-back and chill” in a listening room crowd — is and will always be essential for such venues, whether it is buying some merch, or buying tickets for shows that may be delayed, or GoFundMe fundraisers.
“If people love live music, there is several great venues in West Michigan alone … If they want to help, find your venue that you love to go to” and support them in anyway you can,” Michelle Hanks said.
For more information on the National Independent Venue Association (NIVA) visit NIVAssoc.org. For more information on Seven Steps Up, located at 116 S. Jackson., Spring Lake, visit sevenstepsup.com. for more information on Pyramid Scheme, located at 68 Commerce SW, Grand Rapids, visit pyramidschemebar.com.
