Shuttered Venue Operators Grants

SVOG

The PPP and other economic relief programs haven’t worked for live event venues, which are completely shuttered and depend on the gathering of large groups of people in order to conduct business and survive. The live event industry is experiencing upwards of 90 percent revenue loss and will be closed well into 2021 due to health and safety concerns posed by large gatherings.

The Shuttered Venue Operators Grant program included in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act signed into law on Dec. 27th, 2020 denotes eligible organizations with a reduction in revenue due to the COVID-19 pandemic.  In total, the Economic Aid Act allocates $15 billion for the Shuttered Venue Operators Grants, with $2 billion reserved for eligible applications of smaller organizations with less than 51 full-time employees.  

All Eligible applicants may qualify for SVO Grants equal to 45% of their 2019 gross earned revenue, with the maximum amount available for a single grant award of $10 million.  

The grants can be used for payroll costs, rent and scheduled mortgage payments, utilities, PPE, and other ordinary and necessary business expenses, including maintenance costs.​  The grants may not be used to buy real estate, or make investments or loans, or make payments on loans originated after February 15th, 2020.

Who can apply?  Eligible entities include:

  • Live venue operators or promoters

  • Motion picture theater operators

  • The venue must

    • Sell tickets

    • Promote events to the public

    • have defined performance and theater spaces with fixed seating

    • Have lighting rig and sound mixing equipment

  • Live performing arts organization operators

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

  • Theatrical producers

  • Talent representatives, and

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

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

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

Per the Economic Aid Act and specific eligibility criteria, it appears that certain venues are not eligible:

  • Wedding / event venues

  • Sports Stadiums

  • Restaurant that features live music (unless the performances' ticket revenues are greater than the restaurant's

While the S.B.A. is not yet accepting SVOG applications, we expect the portal to open quite soon.  Please contact SBA Loan Aid to be first in line, and initiate your application and navigate interactions with the Small Business Administration.

When the application portal is available, the Small Business Administration will first open to entities that have suffered substantial revenue losses due to the COVID-19 pandemic.

  • In the initial 14-day period of implementation, grants will be awarded to eligible entities with revenue losses of at least 90 percent, and

  • In the following 14-day period, grants will be offered to entities with at least 70 percent revenue loss, and

  • Then entities who suffered a 25 percent or greater revenue loss.​

What can an entity do to get ready to apply?


As the SBA works on building the application platform, it would be in your best interest to register for a DUNS number so you can then register in the System for Award Management (SAM.gov). Also, gather documents that demonstrate your number of employees and monthly revenues so you can calculate the average number of qualifying employees you had over the prior 12 months. Lastly, determine the extent of gross earned revenue loss you experienced between 2019 and 2020. This and additional information such as floor plans, contract copies and other evidence will be needed to apply for an SVOG.


Applicants may not use identifiers like ITINs (Individual Taxpayer Identification Number) or EINs (Employer Identification Number) to apply for an SVOG.  Applicants must register in the System for Award Management (SAM.gov).

 

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.  Please contact SBA Loan Aid to be first in line, and initiate your application and navigate interactions with the Small Business Administration.

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San Francisco, CA