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.
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)
John Lanza, CPA, Partner
203.399.1915
John Alfonso, CPA, CGMA, Partner, Not-for-Profit & Education Industry Leader
646.254.7415
Related Services
- Not-for-Profit & Education
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