REMINDER: Shuttered Venue Operators (SVO) Grant - Applications Scheduled to Open Thurs-Apr. 8, 2021
SOURCE: SBA.gov
The Shuttered Venue Operators (SVO) Grant program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. Applications are slated to go live on April 8, 2021.
Visit the program application page to sign up for updates.
SBA's Shuttered Venue Operators Grant Program Details:
The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBAās Office of Disaster Assistance.
Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
Supplemental Documents:
Who Can Apply:
Eligible entities include:
Live venue operators or promoters
Theatrical producers
Live performing arts organization operators
Relevant museum operators, zoos and aquariums who meet specific criteria
Motion picture theater operators
Talent representatives
Each business entity owned by an eligible entity that also meets the eligibility requirements
Other requirements of note:
Must have been in operation as of February 29, 2020
Venue or promoter who received a PPP loan on or after December 27, 2020, will have the SVOG reduced by the PPP loan amount
Grant Amount:
Grant amounts will reflect either of the following instances:
For an eligible entity in operation on January 1, 2019, grants will be for an amount equal to 45% of their 2019 gross earned revenue OR $10 million, whichever is less.
For an eligible entity that began operation after January 1, 2019, grants will be for the average monthly gross earned revenue for each full month you were in operation during 2019 multiplied by six (6) OR $10 million, whichever is less.
How to Apply:
SBA is building the grant program and expects to open applications in early April. Those who have suffered the greatest economic loss will be the first applications processed under the following schedule:
Note: On January 20, 2021, SBA updated the proposed plan for issuing grants during the first and second priority periods. To clarify, priority awardees will not need to satisfy the small employer set-aside. During the first 59 days of opening SVOG, SBA will reserve no less than $2 billion of program funding for grants to entities that have no more than 50 employees.
First priority First 14 days of grant awards.
Entities that suffered a 90% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic.
Second priority Next 14 days of grant awards.
Entities that suffered a 70% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic.
Third priority Beginning 28 days after first and second priority awards are made.
Entities that suffered a 25% or greater earned revenue loss between one quarter of 2019 and the corresponding quarter of 2020.
Supplemental funding Available after all Priority Periods have passed.
Recipients of first, second, and third priority round awards who suffered a 70% or greater revenue loss for the most recent calendar quarter (as of April 1, 2021, or later).
Allowable Use of Funds:
Funds may be used for specific expenses, which include:
Payroll costs
Rent payments
Utility payments
Scheduled mortgage payments (not including prepayment of principal)
Scheduled debt payments (not including prepayment of principal on any indebtedness incurred in the ordinary course of business prior to February 15, 2020)
Worker protection expenditures
Payments to independent contractors (not to exceed $100,000 in annual compensation per contractor)
Other ordinary and necessary business expenses, including maintenance costs
Administrative costs (including fees and licensing)
State and local taxes and fees
Operating leases in effect as of February 15, 2020
Insurance payments
Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production. (May not be primary use of funds)
Grantees may not use award funds to:
Buy real estate
Make payments on loans originated after February 15, 2020
Make investments or loans
Make contributions or other payments to, or on behalf of, political parties, political committees, or candidates for election
Any other use prohibited by the Administrator
Grantee Recordkeeping Grantees will be required to maintain documentation demonstrating their compliance with the eligibility and other requirements of the SVOG program. They must retain employment records for four years following their receipt of a grant and retain all other records for three years.
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