Shuttered Venue Operators Grant
The U.S. Small Business Administration reopened the Shuttered Venue Operators Grant application portal on April 26th for operators of live venues, live performing arts organizations, museums and movie theaters, as well as live venue promoters, theatrical producers and talent representatives to apply for grants based on 2019 gross earned revenue. To be eligible, a business must have been in operation as of February 29, 2020. As of August 20, 2021, the SVOG Portal is no longer accepting new applications though it remains open to all active applicants and awardees. For information on SVOG supplemental awards, check out our blogpost.
Grant totals are 45% of gross earned annual revenue for an eligible entity that began operation before 1/1/19, and the average monthly gross earned revenue for each full month in operation during 2019 multiplied by six for those that began operation after 1/1/19. In either case the maximum grant award is $10 million. Funds may be used for “ordinary and necessary business” expenses including payroll (employees and form 1099 independent contractors), rent/mortgage, utilities, insurance, worker protection expenditures, and state and local taxes and fees. Applicants should register on the SBA's SVOG application portal, and will need a smartphone and a multi-factor authentication app to register and apply.
The SBA has released an Applicant User Guide for business owners to reference when completing an application. Before applying, be sure to gather required background documents (eg. corporate structure, employee list), financial documents (eg. 2019 tax return and 2020 tax return, if filed; financial statements), qualifying-industry specific documents and forms to be compiled. View the SBA's Preliminary Application Checklist for an overview of what is needed to apply as well as the updated SVOG FAQ document.
The SBA has also released helpful FAQ documents for SVOG applicants and SVOG awardees in addition to the agency's SVOG Cross-Program Eligibility chart that summarizes the criteria to meet when considering different SBA COVID-19 relief funding options, such as PPP, EIDL and RRF.
As of 3/11/2021, businesses are now eligible for SVOG even if they applied for a Paycheck Protection Program (PPP) forgivable loan after Dec. 27, 2020. This change was made thanks to new funding provided by the American Rescue Plan Act. Businesses must subtract the amount of any PPP loan issued after Dec. 27, 2020 from the total amount of SVOG funding they are eligible for.
This video overviews the program, including eligibility and how the amount of the grant is calculated. The SBA has a collection of SVOG video tutorials that include industry-specific guidance and we encourage business owners to utilize this resource.
We know navigating different COVID-19 relief programs can be challenging. The Pace University SBDC is here to help. Contact us to schedule a no-cost, one-on-one business counseling session.