Music Worker Access to NYS Seed Money Grants
Updated April 20, 2023
Update from the SEED fund website: “Applications for the NY State Seed Fund Grand program are currently NOT being accepted. Their website says: Due to the high volume of applications received, new applications are currently not being accepted. Applications that have already been submitted will continue to be reviewed. Since funding for this Program is limited, it is possible that the number of applicants that meet the eligibility requirements will exceed available funds.”
If you applied to the NY State Seed Funding Grant program (MWA led the push that resulted in "independent arts contractors" being included in this program), please email musicworkersalliance@gmail.com and tell us how it went:
Was your application accepted or rejected? MWA has had reports of applicants being rejected for reasons that do not align with the eligibility requirements! If this was the case for you let us know.
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“If you were a working musician [in NY State] in 2018 [and onwards] you should have no difficulty applying for this grant.”
Empire State Development Corporation (ESDC) Senior VP Rafael Salaberrios.
The minimum grant will be $5000.
Information on how to apply may be found here:
The NY State Seed Funding Program and Application Guide: www.nyseedgrant.com and the Seed Fund’s call center: 888 585 0312 Mon-Fri: 8-5
On November 2, ESDC conducted a webinar hosted by Music Workers Alliance (MWA) to explain exactly how music workers can apply. That webinar can be viewed in its entirety here: https://www.youtube.com/watch?v=ehQhVfFUi4w
Below is a summary of the process for musicians based on our understanding of the sources above and other publicly available information
If you are a New York State resident that already set up your own business (LLC, DBA, S-corp, etc) on or after September 1st, 2018, and before January 1st, 2022 in New York State, and you already have a business bank account connected to that business, you can apply NOW at https://nyseedgrant.mylendistry.com/landing, and you’ll be able to use your 2018-2021 income and expenses to qualify. Be sure to also look over the NYS SEED Grant FAQ page here to help clarify any questions you may have.
Otherwise, if you are a NY State resident but have never set up a business for your music or if you set up a business prior to September 1st, 2018, you may still be eligible for the [minimum $5000] grant, but before you can apply, you'll need to do four things:
1. If you don’t already have one, get an Employer Identification Number (EIN) for your music business. The process is free and simple: go to EIN Individual Request. Additional information is available here: How to Apply for an EIN | Internal Revenue Service
Note: if you already have an EIN for your sole proprietorship, you do not need, and cannot get, another one. Most banks will ask for an EIN to set up a business bank account, which is why we recommend you having one. Once the EIN is issued on the website, BE SURE TO DOWNLOAD THE PDF OF THE LETTER (aka IRS form CP-575). It's a pain in the neck to get another copy!
2. Register your own music touring related business.
The least expensive way to do this is to apply for a DBA (“Doing Business As”) Certificate. A DBA is assigned according to your COUNTY of residence. If you are a “sole proprietor” (ie: if you get paid for at least some of your work on 1099’s as an "independent contractor” or in cash), you must go to your County Clerk's office to obtain a DBA. Each county has its own filing rules, so you need to check online by looking up your STATE COUNTY CLERK’S OFFICE.
A. Obtain a notarized “Business Registration Form” (Blumberg Legal Form 201). You can download and print the form for $9 HERE.
B. Fill out the form and get it notarized.
C. Go to your County Clerk’s office and submit your notarized "Business Registration Form".
NOTE: Registration fees differ by County. The Kings County [Brooklyn] Clerk will charge you a $100 registration fee plus $10.50 per copy of the form (it is advisable to make at least 2 copies of your notarized original—for your records, and for establishing a Business Bank Account [see below]. We estimate the total cost in Brooklyn at $136 USD.
The Manhattan [New York County] County Clerk is at New York County Courthouse, 60 Centre Street, Room 161 New York, NY 10007 and can also be reached at 646-386-5955
Whatever county you live in: once you have registered your notarized "Business Registration Form” with your County Clerk, you have officially established your business in the State of NY. You can now create a business bank account and begin the 3-month waiting period before applying for the SEED Fund.
3. Set up a business bank account for the business you just registered.
The DBA approval from NY State or your County of residence and the EIN letter should be sufficient to open a business bank account.
4. Start depositing funds into and paying all music-related expenses out of your new business bank account immediately. Pay at least $2500 of music related expenses out of that account over the next three months.
With these three items—DBA, EIN, and business bank account— in place: those who deposit funds into their business bank account and pay at least $2500 in music expenses (side musician fees, gear, gig-related transportation, rentals, hotels, etc.) through their business bank accounts in the three month period before applying should be eligible to apply. Be sure to keep track of your business expenses, tour costs, transport and lodging, agent and management fees, studio costs, contracts, itineraries, and published reviews/previews, as all of those may be useful in your application process. If you gather prior documentation of work, contracts and itineraries since September 2018, that can also help your application process.
It's important to do this ASAP. You won’t be able to apply for the grant until at least three months after your business bank account is opened, and the $200 million fund won’t last forever.
Note 1: A new business may demonstrate it has been operational for at least 6 months before applying by showing a minimum of $5000 in business expenses during those 6 months.
However, at MWA’s November 2nd Zoom seminar, an ESDC representative suggested that an otherwise eligible independent contractor musician/business could apply even if their business bank account had only been open 3 months:
“[IF] you’ve only had a bank account for 3 months, and they look at your business bank account and they say “Okay, there’s $2500 coming out of this business bank account in the last three months”, that would translate to 6 months being $5000 dollars: its reasonable for…[Lendistry/ESDC] to assume that you’ve got $5000 in expenses.” [c/a 1:26]
Note 2: In response to any questions concerning the formation date of your new business: in our understanding, based on the information provided by ESDC, the simplest is to submit only your business registration (for example: your DBA certificate) document. If you submit any documents dating the registration or formation of your business entity before Sept 2018: you will be rejected.
Note 3: The Seed Fund was originally designed for small “brick-and-mortar” businesses opening after September 1st, 2018, and operating before December 31st, 2021. MWA requested changes to make it possible for working independent contractors to apply
Unfortunately, the official Seed Fund’s online forms still reflect the original language, and many musicians have found this confusing. MWA is working with ESDC to clarify their messaging. We welcome feedback from those who have applied successfully—and from those who have found the information confusing or been unfairly rejected. <musicworkersalliance@gmail.com>
Disclaimer:
Decisions on eligibility for Seed Fund Grants are made by the Empire State Development Corporation (ESDC), an agency with sole authority to decide on applications. While we are advising that you may be eligible for these state funded grants and recommend that you apply for them, there certainly is no guarantee that you will qualify. Further, if you do qualify it will be based upon information that you provide on the application. The actual application process is not something on which we can provide advice. This recommendation does not constitute legal advice and should no be construed as such.
While the above constitutes our understanding of relevant information from ESDC and other publicly available sources, we are not suggesting that any individual establish a business entity for the sole purpose of accessing the Seed Fund or any other relevant Grant.
This campaign was organized by the Music Workers Alliance (MWA), a workers center dedicated to the empowerment of indie music workers. We wish to thank State Senator Brad Hoylman; chair of Labor Committee State Senator Jessica Ramos and Chair of Small Business Committee State Senator Anna Kaplan; campaign director Olympia Kazi; and expert advisors Bill Herbert, David Ng, Bruce Seckendorf, and Andy Stettner; as well as the many others whose hard work made this victory possible.
If you’re a music worker with questions on the Seed Fund please contact musicworkersalliance@gmail.com. To receive more updates, and to join us in defending our rights and livelihoods: become a member of Music Workers Alliance