The Shuttered Venue Operators Grant (SVOG) was established through the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, which is part of the Consolidated Appropriations Act signed by the President in December 2020.
The American Rescue Plan also amended the SVOG program so entities that apply for a Paycheck Protection Program (PPP) loan after December 27, 2020, can also apply for an SVOG, with the eligible entity’s SVOG to be reduced by the PPP loan amount.
Lurie’s Economic Relief Team has summarized the latest information and emergency assistance available for eligible venues impacted by COVID-19 business loss. Contact your Lurie advisor, or contact our team, for more information.
Who Can Apply for the SVOG?
According to the SBA, eligible applicants may qualify for SVOG equal to 45% of their gross earned revenue, with the maximum amount available for a single grant of $10 million. At least $2 billion is reserved for eligible applications, specifically small operators with up to 50 full-time employees.
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
Preparing to Apply for the Grant | Checklist
The application period is currently set to open on April 8, 2021. We anticipate the funding for this grant will run out relatively quickly – so we recommend you prepare the following information.
- Obtain your Dun & Bradstreet (DUNS) number by accessing dnb.com or calling (866) 705-5711
- Register both DUNs number and tax ID number (TIN) with SAM
- It is required as part of the application to register with the federal government’s SAM at SAM.gov.
- The SAM registration may take up to two weeks once submitted so it is best to do this as soon as possible to avoid any delay in funding
- Written statement of need
- A good faith certification that the uncertainty of current economic conditions makes the grant necessary to support ongoing operations
- If the entity is currently in operation, must state that the entity will remain in operation after receipt of the funds. If the entity is currently shuttered, the statement shall include the intent to reopen with an estimated date
- All statements shall include an assurance that the entity was fully operational on February 29, 2020
- Corporate documents (may include Articles of Incorporation, Certificate of Formation or Articles of Information, etc.)
- Government issued photo ID (front and back) of the business owner or primary officer of the organization
- Employee list with job titles and employee status (full and part time)
- This list of employees should be as of February 29, 2019
- Tax exempt documents (non-profits)
- 2019 tax return
- 2020 tax return, if filed
- Gives SBA the permission to access tax forms directly from the IRS. Must be filed out properly or your request for the SVOG will be declined
- Quarterly income statements for 2019 and 2020, signed by a primary officer of the organization
- Payroll statements covering February 29, 2020
- Copy of most recent audited financial statements or Single audit (if applicable for your organization)
- The application process will guide you to each of these forms for you to print, sign and upload to the SVOG portal:
- Certificate of a Drug-Fee workplace
- SBA Form 1623
- SBA Form 1711
- There are specific documents required for each type of entity. Refer to the SVOG Preliminary application checklist
- Review the draft application so you are aware of all of the information you will need to apply. Shuttered Venue Operators Grant: Preliminary Application Checklist, March 11, 2021 (sba.gov)
How Are the Grant Applications Processsed?
Businesses that have suffered the greatest economic loss will be the first applications processed under the following schedule:
- Entities that suffered a 90% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic
Entities that suffered a 70% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic
Entities that suffered a 25% or greater earned revenue loss between one quarter of 2019 and the corresponding quarter of 2020
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)
What Are the Eligible Expenses?
SVOG 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)
Funds Cannot Be Used Towards the Following Items:
- 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
Retention of Documentation for Use of Funds
Entities who receive the grant 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.
For More Information
Our team will update our SBA Loans & Resources Hub with guidance and the latest information available. The Small Business Administration’s website, SBA.gov, will have additional resources and portal access, here: Shuttered Venue Operators Grant (sba.gov)
In the meantime, please don’t hesitate to reach out to our team or your Lurie advisor with your questions. We are here to help. Click here to contact us.
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