• Cole Przybyla

Shuttered Venue Operators (SVO) Grant program

Program details

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. The program includes $15 billion in grants to shuttered venues, to be administered by the Small Business Administration’s Office of Disaster Assistance.

Eligible applicants may qualify for SVO 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.


Who can apply

Eligible entities include:

o Live venue operators or promoters

o Theatrical producers

o Live performing arts organization operators

o Relevant museum operators, zoos and aquariums who meet specific criteria

o Motion picture theater operators

o Talent representatives, and

o Each business entity owned by an eligible entity that also meets the eligibility requirements

Other requirements of note:

o Must have been in operation as of Feb. 29, 2020

o Venue or promoter must not have received a PPP loan on or after Dec. 27, 2020


Detailed information on eligibility requirements coming soon.

Amount of SVO Grant

Awards will be either for:

o An eligible entity that was in operation on Jan. 1, 2019, the lesser of an amount equal to 45% of their 2019 gross earned revenue OR $10 Million.

o An eligible entity that began operation after Jan. 1, 2019, the lesser of the average monthly gross revenue for each full month you were in operation during 2019 multiplied by 6 OR $10 Million.

How to apply

The SBA is in the process of setting up the grant program and is not yet accepting applications. Small businesses who have suffered the greatest economic loss will be the first applications processed under the following schedule:


Open only to small entities with up to 50 employees:


First Priority

1st 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 & Second Priority Awards are made

Entities that suffered a 25% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic.


Supplemental Funding

Available after First & Second Priority

Recipients of First and Second Priority round who suffered a 70% or greater revenue loss for the most recent calendar quarter (as of 04-01-21 or later)

Unrestricted; open to entities of any size:

Unrestricted, non-priority round

Begins 61 days after initial grant awards

Eligible entities of any size that suffered a 25% or greater revenue loss


Allowable use of funds

Funds may be used for specific expenses, which include:

o Payroll costs

o Rent payments

o Utility payments

o Scheduled mortgage payments (not including prepayment of principal)

o Scheduled debt payments (not including prepayment of principal) on any indebtedness incurred in the ordinary course of business prior to 02-15-20)

o Worker protection expenditures

o Payments to independent contractors (not to exceed $100K in annual compensation per contractor)

o Other ordinary and necessary business expenses, including maintenance costs

o Administrative costs (incl. fees and licensing)

o State and local taxes and fees

o Operating leases in effect as of 02-15-20

o Insurance payments

o 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:

o Buy real estate

o Make payments on loans originated after 02-15-20

o Make investments or loans

o Make contributions or other payments to, or on behalf of, political parties, political committees, or candidates for election

o 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 SVO Grant program. They must retain employment records for four years following their receipt of a grant and retain all other records for three years.


Application and additional guidelines will be posted when available.

For more information

For additional information, email SVOGrant@sba.gov. All emails regarding SVO Grants will be sent using an official government email address ending in @sba.gov.

Examples


Example 1: ELIGIBLE for First Priority

# of employees

10

2019 Revenue

(April 1 – Dec 31)

$200,000

2020 Revenue

(April 1 – Dec 31)

$20,000

Total revenue/2019

10%


Example 2: INELIGIBLE for First Priority; eligible for Second Priority phase

# of employees

15

2019 Revenue

(April 1 – Dec 31)

$500,000

2020 Revenue

(April 1 – Dec 31)

$140,000

Total revenue/2019

28%


Example 3: INELIGIBLE for First & Second Priority; eligible for Third Priority phase

# of employees

42

2019 Revenue

(April 1 – Dec 31)

$750,000

2020 Revenue

(April 1 – Dec 31)

$172,500

Total revenue/2019

23%


Example 4: INELIGIBLE for First, Second & Third Priorities; eligible for Unrestricted Round

# of employees

62

2019 Revenue

(April 1 – Dec 31)

$2,750,000

2020 Revenue

(April 1 – Dec 31)

$605,000

Total revenue/2019

22%

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