Lancaster County’s Clair Global, which provides reinforcement and tour support to the world’s greatest rock acts and music festivals, has some news you would rather not hear.
This week the Federal Reserve announced that it had granted the concert giant a $ 71 million loan Loan program on the main street. The loan is the largest of its kind in the country.
The $ 600 billion program was designed to help businesses that were in good financial shape prior to the COVID-19 pandemic but need loans to support them until they recover from the economic disruption.
Clair Global did everyone last year The 10 most successful concert tours: the Rolling Stones; Elton John; Bob Seger; Pink; and Ariana Grande, among others. Clair was also a key participant in the Made in America festival on Benjamin Franklin Parkway, where it provided amplifiers and WiFi for 130,000 participants.
Few sectors have been as badly affected by the coronavirus as the network of companies providing infrastructure for live entertainment events.
According to the industry consortium We do events, 95% of the live shows have been canceled due to COVID-19. This included stadium and arena tours from well-known Clair customers, including K-pop sensations BTS and country music superstar Kenny Chesney.
In the $ 877 billion event industry, 96% of companies cut staff or wages.
Clair, based in Lititz, admitted having suffered during the health crisis. But she wouldn’t even reveal a whisper about how the pandemic affected her bottom line or how she would use the $ 71 million government-backed loan.
Troy Clair, President and CEO of Clair Global, said in a statement that “the loan is proportional to the devastation the industry has seen over the past seven months”.
The company employs approximately 650 people worldwide but has refused to disclose how many of these workers work in the United States. Corresponding Reports in trade journals, some Clair employees have been deployed to set up temporary civil protection structures and create wireless computer networks, mobile office facilities, network security and communications relays for emergency personnel.
Clair is not required to disclose her financial information as it is privately owned.
The loan was handled by Fulton Bank, also from Lancaster County. In the event of a default, the taxpayer’s money is usually lost, not the bank’s money, which runs the risk of not being repaid.
The Main Street Lending Program was developed in the spring as part of the financial bailout act to help businesses too big to qualify for the better-known paycheck protection program but too small to get off the big Federal Reserve corporate bond purchases benefit.
Unlike the forgivable PPP program loans, funds from the Main Street program must be repaid. Credit standards are also more selective, requiring participants to be in good financial shape with manageable debt prior to the pandemic.
Banks write loans under the program, but can then cede 95% of that debt to the Fed, leaving them with less vulnerable assets.
Clair Global also has between $ 5 million and $ 10 million in a PPP loanTo show records.