The Star Tribune Media Company has been awarded a $10 million PPP loan.
The second round of the Paycheck Protection Program (PPP) awarded Star Tribune Media Co. a $10 million loan, the maximum amount available, to help it deal with a significant drop in advertising revenue during the epidemic.
“Like many media enterprises, the disruption to our advertising base walloped Star Tribune,” the company’s publisher said on Friday.
Help to deal with the pandemic
“With this loan, we should be able to continue to weather the consequences of COVID-19 on our business,” he said.
“More importantly, it ensures that we will be able to continue reporting on the epidemic and other problems that are vital to Minnesotans to the best extent possible.” according to this Installment Loan
How many applications were made?
More than 2,000 news organizations applied for and received PPP loans in the previous year, ranging from small community newspapers to more prominent newspapers like the Seattle Times.
In the first round of the federal program to help people keep their employment during the pandemic, nearly 5 million loans were given out last year. In December, the second tranche of funding was made possible by Congress’s $900 billion relief package.
How are the funds utilized?
According to the program’s criteria, at least 60% of the funding must be spent for payroll costs.
The remaining funds might be utilized for rent and other running costs. If the funds are used for permitted reasons, the loan is forgiven.
In an e-mail to employees on Friday, it was underlined that advertising had not yet returned in 2021 at the planned and budgeted levels.
“So this PPP loan comes at a good time, and it should let us weather all realistic obstacles,” the study stated.
Last fall, Star Tribune Media announced the closure of City Pages, an alternative weekly newspaper and website. Claiming that its business model was no longer viable because it relied heavily on advertising from events, nightclubs, bars, and restaurants, all of which had been devastated by the pandemic.
Thirty people were laid off.
Last year, the corporation requested hundreds of employees to take unpaid furloughs totaling around 6% of their typical work schedule for six months.