Shuttered Venue Operator Grant – Overview
The 2020 pandemic destroyed many industries due to mandated lockdowns. During the lockdowns, the federal government and many NGOs came ahead to rescue the suffered businesses.
Many grants and supportive programs launched by the organizations and government combined to help small businesses and industries recover from their losses.
The Federal Government created a shuttered venue operator grant to provide financial support to the shuttered venues. Production houses were the most affected ones during the lockdown period.
To help them recover from all the losses they have faced, the SVOG program was launched. Everything you need to know about the Shuttered Venue Operator Grant is given in this article.
What is the Shuttered Venue Operator Grant Program?
The Shuttered Venue Operator Grant (SVOG) program was created by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, part of the Consolidated Appropriations Act, 2021.
The U.S. Small Business Administration administers the program.
The Federal Government has decided to provide financial aid to artists, actors and actresses, live venue operators, and other related businesses.
The American Rescue Plan Act of 2021 provided additional funding and made certain amendments to the SVOG program, but it was initially established by the Consolidated Appropriations Act, 2021.
The Shuttered Venue Operator Grant Program initially included $15 billion in funding. The American Rescue Plan Act provided an additional $1.25 billion, bringing the total to $16.25 billion.
Who qualifies for the SVOG Program?
To qualify for this program, one must meet the eligibility criteria set by the federal department. Here’s the full list of eligibility requirements that an applicant must match.
Eligibility Requirements for the SVOG Program
Who can apply for the SVOG Program?
#1. Theatrical producers
#2. Museum operators
#3. Talent representatives
#4. Live venue operators
#5. Live venue promoters
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#6. Live performing art operators
#7. Motion picture theatre owners
#8. Motion picture theatre operators
What are the requirements?
#1. The above-listed entities must be active as of February 29, 2020.
#2. Entities that received a Paycheck Protection Program (PPP) loan after December 27, 2020, will have the SVOG amount reduced by the PPP loan amount they received.
#3. The entity has suffered a reduction of at least 25% in gross earned revenue during one of the quarters of 2020 compared to 2019.
#4. Besides this, the program has venue-centric requirements, such as a certification for accepting or requiring the SVOG’s financial aid to recover the losses due to lockdowns.
The program has categorized the eligibility criteria as per the type of entities and individuals. Here’s the list of all the SVOG program categories of shuttered venues and the entertainment industry.
Live Venue Promoters and Operators
#1. Must be hosting, promoting, and managing live venues, live programs, comedy shows, etc.
#2. 70% of the income must come from selling the tickets or entrance fees, selling foods and beverages, reimbursement, and production fees.
#3. The entrance fees or ticketing system must be required.
#4. Must pay performers for their performances.
Museum Operator
Must be operating private, public, or non-profit entities for educational, aesthetic, and cultural heritage purposes.
Motion Picture Theatre Operator
The principal business should be to operate the theatre owned by the operator to show movies by selling tickets.
Who benefits from the SVOG Program?
SVOG Program was created to support those from the entertainment industry and production department financially.
The eligible entities received up to $10 Million as a grant through the SVOG program. $10 Million is a cap for each entity; no entity will receive more than $10 Million through this grant.
The grant amount per entity was calculated as the lesser of 45% of their 2019 gross earned revenue or $10 million.
The entities must match the eligibility requirements to apply for the grant’s amount.
The U.S. Small Business Administration has decided to start the supplemental phase of the SVOG Program.
The supplemental phase of the SVOG program does not have over $16.25 billion to distribute; this amount includes the initial funding plus the supplemental funding provided by the American Rescue Plan, meant for the entire program, not just the supplemental phase.
About SVOG Supplemental Awards:
The SVOG Supplemental Awards is the next phase of the original SVOG Program announced by the U.S. Small Business Administration.
The program extends the time to use the grant by the recipients to June 30, 2022. The budget period for the grant is also extended to 18 months.
This statement about the sufficiency of funds should be verified against the most current information from the SBA, as it can vary based on the number of applications received and the total funding allocated.
The grants will be distributed to those who need financial support. The authority will prepare a list of applicants who are eligible for the grant’s money.
Eligible Candidates Should Do the Following as Suggested by the Authority:
The applicant must register their application through an online portal. A multi-factor authenticator app and a smartphone or computer system are required to register a new application.
The applicant user guide and the Frequently Asked Questions on their official portal must be checked by the applicant.
Check the checklist of the application documents and collect all the required documents. The required documents need to be uploaded at the time of applying through an online portal.
The Bottom Line:
The U.S. Small Business Administration department is always ready to help the worst-affected businesses due to the 2020 pandemic.
The department has helped thousands of entities during the lockdown period by providing financial support.
SVOG program is a savior to shuttered venues and those related to the entertainment industry.
The program has already distributed millions of dollars as grants to eligible entities. For more information about the documents, resources, FAQs, etc., visit their official portal now!
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