Stimulus Bill Includes Relief Funds For Local News Outlets

A provision authored by U.S. Senator Maria Cantwell (D-WA) and included in the bipartisan COVID stimulus package would make thousands of small local newspapers, radio, and television broadcasters, and hundreds of public broadcasting stations that produce and distribute local news and emergency information, eligible for emergency federal support under the Paycheck Protection Program (PPP).

The bill provides $284.5 billion for the entire Paycheck Protection Program, a new infusion of cash for a program that has been a lifeline for small businesses across the country, including 108,000 Washington state small businesses and nonprofits who received $12.5 billion in PPP loans. Cantwell’s provision makes over 100 newspapers and broadcasting stations throughout Washington newly eligible for PPP funding, and more than 2,000 newspapers and 3,384 TV and radio stations newly eligible nationwide.

Senator Maria Cantwell

“During this pandemic, local newspapers and broadcasters must continue to communicate vital COVID health data, including lifesaving information about public health guidance, the vaccines, and vaccine distribution,” said Senator Cantwell. “Local news is essential. It makes our communities – and our country – stronger by asking important questions, providing accurate facts, and countering misinformation and disinformation. This bill will make more newspapers, TV and radio stations, and public broadcasters eligible for the Paycheck Protection Program so local reporters can keep us informed.”

Cantwell’s provision provides a fix to the Small Business Administration’s (SBA) affiliation rule, which previously prevented local news outlets that were owned by larger parent companies from accessing PPP funding. The provision would make newspapers and local radio and TV stations that produce and distribute local news and emergency information eligible for PPP funds even if owned by a larger entity as long as the individual radio or TV station has no more than 500 employees or the individual newspaper has 1,000 or fewer employees. The provision would also make public broadcasters that are operated by large universities eligible for PPP, which would benefit public radio stations like those run out of the University of Washington and Washington State University.

Additionally, for these loans to be forgiven, the local newspaper or broadcast station must spend at least 60% of the loan funds on payroll in order to keep journalists, newsroom workers, and other essential employees on the job. Cantwell also secured language in the stimulus package that waives affiliation rules for local newspapers and radio and TV stations so that they can qualify for a second round of PPP funding. To qualify, an individual newspaper or station must have 300 employees or fewer and meet revenue loss requirements.

Local news is a critical source of trusted information in minority communities and other underserved communities that have been disproportionately impacted by COVID-19. Black-owned newspapers and radio stations and Spanish-speaking stations have gained trust with their communities over decades, and these outlets are often the go-to sources of information for minority-owned businesses. Cantwell’s provision ensures that these newspapers and stations that were not previously eligible based on their affiliations will now be able to access PPP funding.