Shuttered Venue Operators Grant (SVOG)
The Shuttered Venue Operators Grant is available to businesses, nonprofits, and venues that have been hard-hit by the pandemic. The program includes over $16 billion in grants, administered by the SBA to eligible shuttered venues. The grant opens on April 8, 2021, and applications will be accepted on a rolling basis. We’ve outlined some key details for you regarding this grant.
At the time of application, each applicant will be required to complete a proposed budget stating how they intend to use the grant funds. Allowable costs for the use of the funds include payroll costs, rent payments, utility payments, scheduled debt payments, payments to independent contractors, state and local taxes and fees, operating leases, insurance, etc. In addition, Applicants will also be required to supply supplemental forms and documentation outlined in the Preliminary Application Checklist provided by the SBA.
The SBA will be reviewing applications and awarding funding based on three levels of priority.
- First Priority – The first 14 days of grant awards will be prioritized to entities who suffered a 90% or greater revenue loss in April-December 2020.
- Second Priority – The next 14 days of grant awards will be prioritized to entities who suffered a 70% or greater revenue in loss April-December 2020.
- Third Priority – Then 30 days following the first priority awards, entities who suffered a 25% or greater revenue loss between one quarter in 2019 and the corresponding quarter in 2020 will be considered.
We encourage you to apply as soon as possible and the SBA will award your funds based on where your eligibility falls within their priority timeline.
Entities eligible to apply for the grant include: live venue operators or promoters, theatrical producers, live performing arts organization operators, relevant museums, zoos and aquariums, motion picture theater, talent representatives, etc. Documentation to support your eligibility, as outlined in the Preliminary Application Checklist must be provided.
If your business was in operation on January 1, 2019, the grant will be equal to 45% of your 2019 gross earned income or up to the maximum amount of $10 million, whichever is less.
If your business was operating after January 1, 2019, grants will be awarded based on your average monthly gross earned revenue for each full month you were in operation during 2019 multiplied by 6, or up to the maximum amount of $10 million, whichever is less.
If you received a PPP loan on or after December 27, 2020, the awarded grant amount will be reduced by the amount of PPP funds you received.
Closing Out The Grant
After you are awarded the grant and use the funds towards any of the outlined allowable expenses, you will be required to close out the grant. To do so, you will need to report your expenditures in each budget category, as well as provide documentation for those expenditures in which the funds were used towards.