What Is The SVOG Program?
The Shuttered Venue Operators Grant (SVOG) Program provides emergency economic aid for eligible venues affected by the COVID Pandemic.
The Economic Aid Act funded the SVOG program with $15 billion to provide eligible applicants with grants equal to 45% of their gross earned revenue, up to a maximum of $10 million.
The $1.9 trillion American Rescue Plan Act, H.R. 1319, which President Joe Biden signed into law Thursday, includes an additional $1.25 billion in funding for the SVOG program and also allows eligible entities that receive a first- or second-draw Paycheck Protection Program (PPP) loan after Dec. 27, 2020, to also receive an SVOG. Receiving or even having open applications for both programs had been prohibited, but the new law makes it possible for venue operators to receive both, provided the amount of the SVOG is reduced by the amount of PPP funds approved.
What Entities Are Considered Eligible Venues FOR SVOG?
Entities eligible to apply for an SVOG include live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives.
What Are The Requirements To Receive an SVOG as an Eligible Venue?
Entities described above must have at least 70 percent (70%) of earned revenue derived from live events and the business must have been in operation as of February 29, 2020.
Eligible entities must have fewer than 500 FTEs, operate only in the U.S., operate in 10 or fewer states, and had gross earned revenue during any of the first, second, third, or fourth quarter in 2020 that demonstrated at least a 25 percent (25%) reduction from the gross earned revenue of such business during the corresponding quarter in 2019.
When Will The SBA Begin Accepting Applications FOR THE SVOG?
The U.S. Small Business Administration (SBA) expects to begin accepting applications in early April for the Shuttered Venue Operators Grant (SVOG) program.
How Can An Eligible Entity Apply FOR SVOG?
The SBA on Thursday issued an updated preliminary checklist of documents SVOG applicants may be required to submit, which can be found HERE.
SVOG applicants need to register with the federal government’s SAM to apply and cannot use an ITIN, EIN, or other means of identification or registration. Interested parties are encouraged to obtain a Dun and Bradstreet (DUNS) number (a prerequisite for SAM registration) as soon as possible. With a DUNS number, interested parties then should immediately begin registering in SAM.gov, as the SAM registration may take up to two weeks once submitted.
SBA FAQs can be found HERE.