By Christopher Cole

Law360 (April 17, 2020, 4:38 PM EDT ) A pay-TV lobbying group is urging lawmakers not to allow large media conglomerates to soak up any of the coronavirus relief money that Congress set aside to help keep small businesses afloat as the COVID-19 shutdown ravages the economy.

The American Television Alliance — a lobbying group for cable and satellite providers that is frequently at odds with top broadcasters on hot-button industry issues such as retransmission consent — issued a statement on Thursday lambasting an effort by large broadcast stations groups to qualify for the Paycheck Protection Program.

Congress and the White House set up the fund in recent weeks to shore up businesses severely impacted by shutdowns affecting much of the economy amid the coronavirus pandemic.

Lawmakers continue to deliberate over another round of fiscal stimulus to further buoy the private sector. But ATVA on Thursday urged rejecting a National Association of Broadcasters proposal to allow television station conglomerates to qualify for COVID-19 relief intended for small businesses.

The group said that Congress established the Paycheck Protection Program to provide relief to small businesses with fewer than 500 employees suffering due to the coronavirus pandemic, "but the NAB wants to change the rules to allow large station groups like Hearst, TEGNA, Sinclair and Nexstar to participate."

"The PPP was designed by Congress to provide relief to small businesses in need, and is already stretched beyond its initial funding limitations," ATVA spokesperson Jessica Kendust said in the statement. "For NAB to suggest that even its very largest members be eligible for these funds once replenished, is not only misguided, but harmful to those who need it the most."

Even though the vast majority of TV stations are not individually operated but are owned and controlled by large station groups, NAB wants to change the criteria so that each individual television station constitutes its own "business" for eligibility, according to the statement.

The group pointed to a recent Federal Communications Commission decision, backed by large broadcasters, to eliminate a rule requiring TV stations to maintain physical presence and significant personnel in their local communities.

Under NAB's current proposal, "not only would large conglomerates qualify for loans intended for struggling small businesses, they would do so even in markets where they have no staff and essentially operate by remote control," ATVA said.

"These conglomerates are obviously not 'small businesses,' nor are they simply collections of stations operating independently. In reality, corporate owners do — and by law must — control every material aspect of the stations they own and operate," Kendust said.

The NAB declined to comment on Friday.

On the advocacy page of its website, the NAB urged that, as Congress enacts additional COVID-19 stimulus and relief measures, "it should include provisions that help bring immediate liquidity to struggling local radio and television stations that are needed now more than ever."

"Without relief, the local journalism and essential public services that broadcasters provide will begin to disappear," NAB said. "Many of these stations — particularly smaller radio stations — may never return."

The trade group urged Congress to consider modifications to the existing "Corona-3" Small Business Administration Paycheck Protection Program and "Distressed Sector" Lending Program to expand broadcasters' eligibility and access to both programs.

NAB also advocated appropriating and directing federal advertising dollars for specific programs where community outreach is needed for spending on local media, including those serving minority communities. and setting aside stimulus funds provided to businesses for their recovery efforts for advertising on local media.

--Additional reporting by Kelcee Griffis. Editing by Nicole Bleier.

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