NOTE: This article is current as of January 27, 2021, and will be updated as more information is made available by the SBA.
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The new Shuttered Venue Operators Grant (SVOG) will soon be available, with grants equal to 45% of gross revenue, up to $10 million per venue, for these eligible venues:
- 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
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How to Apply
The SVOG has $15 billion in grant funds, and small venues with the greatest losses will be prioritized. Venues with 50 or fewer employees that suffered a 90% or greater loss between April 2020-December 2020 will have first priority, followed by 70% loss, 25% loss, then venues with 70% or greater have a chance at supplemental funding, and finally, any sized entity that suffered a 25% or greater loss.
Eligibility and Grant Amount
It is important to note that recipients of the SVOG must not have received a PPP loan after December 27, 2020. The amount of the grant will be either for:
- 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
- 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
If your venue is considering applying for the PPP loan or the SVOG, you or your accountant should calculate the difference in amounts you could potentially receive to choose the best fit for your organization.
Allowable Use of Funds
The SVOG does have a wider variety of allowable expenses than the PPP loan, including:
- 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 $100K 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)
When the application is published and more info is available, this article will be updated. For more information, please visit the SVOG page on the SBA website and visit the National Independent Venue Association Save Our Stages Act page.