Dear Central Coast Small Business Leaders,
Please see the below information from SBA regarding shuttered venue grants.
Please let us know if you have any questions,
Mark
In addition to the webinar the SBA hosted last week which is available at this link on the SBA YouTube channel, there is information that has been posted on the SBA webpage at this link and copied below.
Program details
The Shuttered Venue Operators (SVO) Grant program was established by The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the Small Business Administration’s Office of Disaster Assistance.
Eligible applicants may qualify for SVO Grants 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.
Who can apply
Eligible entities include:
o Live venue operators or promoters
o Theatrical producers
o Live performing arts organization operators
o Relevant museum operators, zoos and aquariums who meet specific criteria
o Motion picture theater operators
o Talent representatives, and
o Each business entity owned by an eligible entity that also meets the eligibility requirements
Other requirements of note:
o Must have been in operation as of Feb. 29, 2020
o Venue or promoter must not have received a PPP loan on or after Dec. 27, 2020
Detailed information on eligibility requirements coming soon.
Amount of SVO Grant
Awards will be either for:
o An eligible entity that was in operation on Jan. 1, 2019, the lesser of an amount equal to 45% of their 2019 gross earned revenue OR $10 Million.
o An eligible entity that began operation after Jan. 1, 2019, the lesser of the average monthly gross revenue for each full month you were in operation during 2019 multiplied by 6 OR $10 Million.
How to apply
The SBA is in the process of setting up the grant program and is not yet accepting applications. Small businesses who have suffered the greatest economic loss will be the first applications processed under the following schedule:
Open only to small entities with up to 50 employees:
| First Priority
1st 14 days of grant awards |
Entities that suffered a 90% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic. |
| Second Priority
Next 14 days of grant awards |
Entities that suffered a 70% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic. |
| Third Priority
Beginning 28 days after First & Second Priority Awards are made |
Entities that suffered a 25% or greater revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic. |
| Supplemental Funding
Available after First & Second Priority |
Recipients of First and Second Priority round who suffered a 70% or greater revenue loss for the most recent calendar quarter (as of 04-01-21 or later) |
Unrestricted; open to entities of any size:
| Unrestricted, non-priority round
Begins 61 days after initial grant awards |
Eligible entities of any size that suffered a 25% or greater revenue loss |
Allowable use of funds
Funds may be used for specific expenses, which include:
o Payroll costs
o Rent payments
o Utility payments
o Scheduled mortgage payments (not including prepayment of principal)
o Scheduled debt payments (not including prepayment of principal) on any indebtedness incurred in the ordinary course of business prior to 02-15-20)
o Worker protection expenditures
o Payments to independent contractors (not to exceed $100K in annual compensation per contractor)
o Other ordinary and necessary business expenses, including maintenance costs
o Administrative costs (incl. fees and licensing)
o State and local taxes and fees
o Operating leases in effect as of 02-15-20
o Insurance payments
o Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production. (May not be primary use of funds.)
Grantees may not use award funds to:
o Buy real estate
o Make payments on loans originated after 02-15-20
o Make investments or loans
o Make contributions or other payments to, or on behalf of, political parties, political committees, or candidates for election
o Any other use prohibited by the Administrator
Grantee Recordkeeping
Grantees will be required to maintain documentation demonstrating their compliance with the eligibility and other requirements of the SVO Grant program. They must retain employment records for four years following their receipt of a grant and retain all other records for three years.
Application and additional guidelines will be posted when available.
For more information
For additional information, email SVOGrant. All emails regarding SVO Grants will be sent using an official government email address ending in @sba.gov.
Examples
Example 1: ELIGIBLE for First Priority
| # of employees |
10 |
| 2019 Revenue
(April 1 – Dec 31) |
$200,000 |
| 2020 Revenue
(April 1 – Dec 31) |
$20,000 |
| Total revenue/2019 |
10% |
Example 2: INELIGIBLE for First Priority; eligible for Second Priority phase
| # of employees |
15 |
| 2019 Revenue
(April 1 – Dec 31) |
$500,000 |
| 2020 Revenue
(April 1 – Dec 31) |
$140,000 |
| Total revenue/2019 |
28% |
Example 3: INELIGIBLE for First & Second Priority; eligible for Third Priority phase
| # of employees |
42 |
| 2019 Revenue
(April 1 – Dec 31) |
$750,000 |
| 2020 Revenue
(April 1 – Dec 31) |
$172,500 |
| Total revenue/2019 |
23% |
Example 4: INELIGIBLE for First, Second & Third Priorities; eligible for Unrestricted Round
| # of employees |
62 |
| 2019 Revenue
(April 1 – Dec 31) |
$2,750,000 |
| 2020 Revenue
(April 1 – Dec 31) |
$605,000 |
| Total revenue/2019 |
22% |
Mark Dennin | Senior Legislative Assistant
Office of Congressman Jimmy Panetta (CA-20)
406 Cannon House Office Building | Washington, DC 20515
O: 202.225.2861
Panetta.house.gov | Facebook | Twitter
Big Sur Chamber of Commerce
PO Box 87
Big Sur, CA 93920
(831) 667-2100
http://www.bigsurcalifornia.org
http://www.thebigsurblog.com
http://www.twitter.com/BigSurCC
https://www.facebook.com/BigSurInformation
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