Since the Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which was signed into law on Dec. 27, 2020, there have been open questions for potential applicants. Now, the Small Business Administration (SBA) has released an FAQ document, but businesses are still questioning whether to wait for SVOG or apply for the Paycheck Protection Program (PPP).
About the SVOG program
The SVOG program includes $15 billion in grants to shuttered venues, such as live venue operators or promoters, theatrical producers, live performing arts organization operations, museum operators, motion picture theatre operators, and talent representatives.
According to the SBA, eligible applicants may qualify for SVOGs 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.
Businesses that applied and were approved for a PPP loan prior to Dec. 27, 2020 are eligible to apply for an SVOG; however, if a business applied for a first- or second-draw loan after that date, they would not be eligible for a SVOG; unless the PPP loan is declined.
The SVOG program FAQs, last updated on Feb. 5, 2021, can be found on the SBA website. While the document covers eligibility, application, use of funds, business size/employees, revenue, and subsidiaries, questions around eligibility are unclear for some shuttered venues. Many businesses are grappling with whether to apply for the PPP or wait for SVOG.
While $75 billion in loans have been disbursed by the PPP (as of the release of this alert) a significant amount of funds remain in the program. If your business decides to wait for a SVOG, take these steps in the meantime:
- Apply for a DUNS number
- Apply to SAM.gov
- Compile the necessary information so you are ready to apply
- Conduct gross revenue analysis (2019 vs. 2020)
- Not-for-Profit & Education
- SBA Disaster Loan Assistance
- Paycheck Protection Program (PPP) Loan Forgiveness Assistance
InsightCOVID-19 loan modifications and troubled debt restructurings (TDRs)Erin Todd, Jon Brownell, Christopher GriffinRead an overview of FASB and banking agency guidance on how lenders can determine whether COVID-19-related loan changes qualify for CARES Act relief for TDRs.
InsightA year in review and a look ahead for not-for-profitsJohn Alfonso, Patricia McGowanReview how COVID-19 has impacted Higher Ed, CDFIs, foundations, associations, and social service organizations, and what challenges will likely carry into 2021.
InsightWhat not-for-profit healthcare entities should know about Provider Relief Fund use, reporting, and moreSteven SchwartzLearn when and how to report on use of the federal COVID-19 healthcare funding, the Single Audit implications, and other information for providers.
InsightManaging crisis through agility: Keeping not-for-profit missions possibleJohn Alfonso, Thomas CrawfordRead how technology, data, business continuity planning, and other tools and strategies can help leadership teams adapt to changing challenges and opportunities.