The U.S. Small Business Administration announced it will begin sending invitations for supplemental awards for the Shuttered Venue Operators Grant program. Per the Economic Aid to Hard-Hit Small Businesses, Non-profits and Venues Act, SVOG supplemental awards are to be provided to those who received an initial grant and have illustrated a 70% loss when comparing 2021’s first-quarter revenues to the same in 2019. Thus far, approximately $9 billion has been awarded in initial SVOGs to more than 11,500 venues, providing a critical lifeline for theaters, live venue spaces, and other entertainment and cultural hubs as they recover from the pandemic, re-open in many communities across the nation and continue contributing to local economies.
Supplemental award applicants can choose to apply for any amount up to 50% of their original SVOG amount, with a $10 million cap of the initial and supplemental awards combined, according to the law. The supplemental awards also allow SVOG recipients to extend the time to use their grant funds for expenses accrued through June 30, 2022 and lengthen their budget period to 18 months from the initial grant’s disbursement date. SVOG is one of the many programs that the SBA has facilitated during the pandemic that has provided more than $1 trillion in relief for America’s communities.
If sufficient funding is not available for all eligible entities to receive a supplemental award, priority will be given to applicants who have illustrated the greatest revenue loss in the first quarter of 2021 compared to the first quarter in 2019.
Established by the Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act, $15 billion was appropriated for the SVOG program. The American Rescue Plan Act, signed into law by President Joe Biden on March 11, 2021, appropriated an additional $1.25 billion, bringing the program funding to a total of $16.25 billion, with more than $16 billion allocated for grants. Eligible applicants may qualify for a grant 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.
The SBA is accepting SVOG applications on a first-in, first-out basis and allocating applicants to respective priority periods as it receives applications. The first 14 days of SVOG awards, which are expected to begin in late April, will be dedicated to entities that suffered a 90% or greater revenue loss between April and December 2020 due to the COVID-19 pandemic. The second 14 days (days 15-28) will include entities that suffered a 70% or greater revenue loss between April and December 2020. Following those periods, SVOG awards will include entities that suffered a 25% or greater revenue loss between one quarter of 2019 and the corresponding quarter of 2020.
- Live venue operators or promoters, theatrical producers, live performing arts organization operators, relevant museum operators, zoos and aquariums who meet specific criteria, motion picture theater operators, talent representatives, and each business entity owned by an eligible entity that also meets the eligibility requirements
- Must have been in operation as of February 29, 2020
- Must have experienced at least a 25% loss in gross earned revenue during at least one quarter of 2020
- Is not listed on a stock exchange or majority owned and controlled by an entity listed on a stock exchange
- Does not have, or is not majority owned and controlled by an entity with, all three of the following characteristics:
1. Owns or operates venues, relevant museums, motion picture theatres, or talent agencies or talent management companies in more than one country;
2. Owns or operates venues, relevant museums, motion picture theatres, or talent agencies or talent management companies in more than ten States; and
3. Employs more than 500 employees as of February 29, 2020, determined on a full-time equivalent basis.
- For a full list of requirements, please visit see the SVOG eligibility requirements