FAQs available for the Shuttered Venue Operators Grants (SVOG) program, but questions remain

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. 

FAQs

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.