Did the San Francisco Opera violate its Coronavirus PPP loan agreements?

Did the San Francisco Opera violate its Coronavirus PPP loan agreements?

By Lynda Carson - September 16, 2026

Reportedly on September 13, 2026, in the SF Classical Voice, “SF Opera and the American Federation of Musicians Local 6, the union representing the SF Opera Orchestra musicians, did not reach an agreement in time for last night’s Sept. 12 opening performance of Simon Boccanegra. As a result, the SF Opera Orchestra went on strike and picketed outside the War Memorial Opera House.

The strike announcement from the union came a half an hour before the curtain was to rise at 8 p.m. Until General Director Matthew Shilvock spoke from the stage at 7:52, the opening-night audience did not know what's happening. Shilvock, announcing the cancellation, told the audience that the company would be in touch about options to donate the value of their seats, hold the credit for a future performance or receive a full refund.

<a>According to the San Francisco Opera Musicians, “Our contract expired on July 31. We came into these negotiations months ago expecting to build on the modest agreement we reached two years ago. Management instead initially proposed a 26% pay cut, which would have returned us to 2015 wages, and later "improved" that offer to a 20% cut. Coming into today, their latest proposal was a five-year wage freeze, which, factoring in inflation, is equivalent to roughly a 20% cut over the life of the contract. All of this at a time when San Francisco rents are surging to the highest in the nation.”

Did the San Francisco Opera Association violate the Coronavirus/covid PPP loan agreements it had forgiven for 2020, and 2021?

The San Francisco Opera Association had two PPP loans forgiven during the Coronavirus/covid pandemic during 2020, and 2021.

A) PPP loan. Amount forgiven is $9,017,190 for 2020. Loan for payroll, 398 jobs reported.

https://projects.propublica.org/coronavirus/bailouts/loans/san-francisco-opera-association-5105337107

B) PPP loan: Amount forgiven is $2,010,356 for payroll, 289 jobs reported, during 2021.

https://projects.propublica.org/coronavirus/bailouts/loans/san-francisco-opera-association-5905078803

There was nearly a 100 person job loss difference, during the two loan periods.

Additionally, their 990 tax filings reveals that during 2021, after subtracting their liabilities from their assets the SF Opera Association had $340,907,354 in net assets or fund balances.

And during 2020, after subtracting their liabilities from their assets, the San Francisco Opera Association had $269,322,430 in net assets or fund balances.

Loan Details and Forgiveness

(Monday, April 27, 2020 at 10:30am EDT.)
Paycheck Protection Program Loan Information

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

According to the Small Business Administration, “The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.”

That’s right! Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. It appears that there was not a reduction even though there was nearly a 100 person difference from 2020, and 2021. Only employees were listed with the PPP loans, as a reason to ask for the loans.

Additionally, in 2020, it appears that the San Francisco Opera musicians were pressured to accept a salary cut of 50%, even though the SF Opera accepted two PPP loans that were forgiven. Amount forgiven is $9,017,190 for 2020. Loan for payroll, 398 jobs reported. Amount forgiven is $2,010,356 for payroll, 289 jobs reported, during 2021.

See a November 1, 2020, release below from the International Musician.

San Francisco Opera Modifies Remaining Contract

November 1, 2020

”In mid-September, musicians and management of the San Francisco Opera agreed to modifications for the remaining three years of their contract, including a salary cut of 50% for the current season. San Francisco Classical Voice later put the fall 2020 reduction at 44 per cent of the 2018–19 base, and International Musician reported that the company’s budget had been reduced from $78.6 million to $44 million. Four years later, in September 2024, the company described its position to San Francisco Classical Voice as "the impossibility of our overall financial model."

The question remains.

Did the San Francisco Opera violate its Coronavirus PPP loan agreements back in 2020, and 2021?

Lynda Carson may be reached at newzland2 [at] gmail.com

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