.attn div margin: auto; background-color: #e8f5ff; border-left: solid #2196F3 3px; padding: 30px; margin-bottom: 10px;
.attn p font-size: 18px; line-height: 32px; color: #181818 !important;
.attn li font-size: 18px; line-height: 32px; color: #181818 !important;
As of August 20, 2022, the SBA is not accepting applications for the Shuttered Venue Operator Grant program.
The COVID-19 pandemic has reduced the sales of businesses ranging from accommodation to oil drilling, but few have been ground to a complete halt the way that indoor entertainment venues have. Let’s face it; if you’re worried about airborne disease transmission, there aren’t too many places less ideal to become compared to close quarters having a many others all night at a time.
Nevertheless, these venues constitute a fundamental part of their community’s social and recreational scenes, and their loss would no doubt be felt whenever they close permanently. To help these shuttered venues stay in business long enough to return when the pandemic is over, Congress has approved a brand new grant program specifically targeted at companies that host entertainment, both live and recorded.
The very first thing you need to know concerning the SBA’s new Shuttered Venue Operator Grant program is the fact that applications will open on April 8th, 2022. Continue reading to see what else you should know concerning the new Shuttered Venue Grants.
What Is The Shuttered Venue Operators Grant Program?
The new SBA Shuttered Venue Operator Grant program passed in the December 21, 2022, stimulus bill, adding it to the mix of business-relief programs designed to address economic losses due to the coronavirus pandemic. The bill sets aside $15 billion for the program, which, again, opens on April 8th, 2022.
Qualifying venues can get as much as $10 million in grant money through the program, a sum that completely eclipses the $10,000 maximum available through EIDL grants. And in contrast to the Paycheck Protection Program, this isn’t a loan that's forgivable under specific circumstances. It’s a grant. In other words, “free money.”
The grants are divided into two waves: an initial grant along with a supplemental grant. All the the first grant is equivalent to 45% of the venue’s 2022 gross revenue, capping out at $10 million. A supplemental grant, equal to 50% of the amount received through the initial grant, will be open to some venues. Note that supplemental grants won't be available until all initial grants submitted within the first 60 days from the program are processed.
You may use the money you obtain from a Shuttered Venue Grant for a number of different purposes, including:
- Payroll
- Rent
- Utilities
- PPE, barriers, and other COVID protection measures
- Debt payments on debts from prior to February 15, 2022
- Payments to independent contractors (not to exceed $100K in annual compensation per contractor)
- Maintenance
- State and local taxes and fees
- Administrative costs, including fees and licensing
- Operating leases in effect by February 15, 2022
- Necessary insurance payments
- Capital expenditures for shows (this may not be the primary use of the funds, however)
You Can’t Have an SVO Grant & A Round 2 PPP Loan
Here’s unhealthy news. If you’re hoping to get a Shuttered Venue Grant, you need to be aware that you can no longer blend it with a PPP loan. However, this only applies to PPP loans received on or after December 27, 2022. And therefore if you received a PPP loan on or after December 27, 2022, whether or not this was the first draw or second draw, you aren't eligible for a Shuttered Venue Operators Grant. If you received a PPP loan before December 27, 2022, you can still entitled to the Shuttered Venue Operators Grant program.
Shuttered Venue Operators Grant Eligibility Requirements
So who qualifies for the Shuttered Venue Operators Grant program?
- Live Venue/Performing Arts Operators & Promoters, & Theatrical Producers: What this means is it’s your principal activity, wherein a protective cover charge is used to pay for performers a portion of proceeds. At least 70% of your revenue needed to originate from ticket sales, refreshments, merchandise, qualified fees, or educational initiatives.
- Motion Picture Theater Operators: In short, you show movies for a small fee. You have to have at least one auditorium having a movie screen and glued seating and a minimum of one projector. You also have to market movies in almost any media.
- Museum Operators: You operate a public, tribal, or private nonprofit institution to have an approved purpose (heritage, aesthetics, educational). The museum needs to be the primary business activity. It must have an indoor exhibition space and a minimum of one auditorium or performance space with fixed seating and regular events. Zoos and aquariums can qualify.
- Talent Agents: 70% of your job must be representing artists who perform live, and those performers must be paid according to ticket sales at live venues.
Additionally, you have to:
- Have been fully operational by February 29, 2022
- Had a loss of revenue with a minimum of 25% in revenue in at least one 2022 quarter in accordance with exactly the same quarter in 2022
- Have reopened or plan to reopen in order to resume representation if you’re an agent
You will be ineligible if:
- Your clients are a publicly-traded company
- You got 10% or more of the 2022 revenue from federal funding
- If two or more from the following are true:
- You own or be employed in more than one country
- You own or operate in more than 10 states
- You have more than 500 employees by February 29, 2022
- Your live performances are mainly of the sexual nature
- You’ve received a PPP loan after December 27, 2022 (see above)
How To Apply For A Shuttered Venue Grant
The SBA is administering the grants directly, so you’ll apply through the SBA’s portal. SVO Grant applications will open on April 8th, 2022, so keep close track of the SBA’s website and become ready to apply if you’re eligible.
During the first 60 days that the SVO Grant program is open, $2 billion is going to be put aside especially for venues with 50 employees or less. Larger venues using more than 50 employees can continue to apply for a grant during this time period provided they meet the other requirements for being priority awardees as described below.
During the first 14 days of the program’s opening, applicants that experienced a 90% or greater lack of revenue between April 1, 2022, and December 31, 2022, compared to the same 2022 period, is going to be eligible. This is known as the First Priority group.
During the following 14-day window, the brink lowers to 70% or greater. This is the Second Priority group.
Twenty-eight days after the SVO Grant program’s opening, the threshold lowers to 25% or greater. Additionally, supplemental funding will be open to First and Second Priority grant recipients that suffered a 70% or greater revenue loss which are more recent calendar quarter (by April 1, 2022, or later).
Beginning sixty-one days after the start of initial grant awards, the $2 billion set-aside for smaller venues no more applies, and all venues which have a break down revenue lack of 25% or greater may have the same shot at receiving an SVO Grant. Note that money received through a CARES program between April 1, 2022, and December 31, 2022, does not count toward your revenue for your year.
More Funding Helpful information on COVID Relief
Don’t think you be eligible for a an SVO grant or want to compare it to the second round of PPP and EIDL grants and loans? is your one-stop-shop for details about small company coronavirus relief.
- Economic Injury Disaster (EIDL) VS Paycheck Protection Program (PPP) Loans: What’s The Difference?
- PPP Round 2: Main Differences Between The First & Second Round Of PPP Funding
- PPP Round 2: How To Apply For An initial Or Second Draw PPP Loan
