Shuttered Venue Operators Grant

Overview:

Government funds have been made available for performing arts centers that have been negatively impacted by the COVID-19 pandemic.

Section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act legislation grants the Small Business Administration (SBA) authority to issue grants to live venue operators, promoters, theatrical producers, performing arts groups, movie theaters and talent representatives. Institutions such as nonprofit museums, botanic gardens, historic homes and zoos will also be eligible for these grants.

The proposed legislation provides $15 billion to the SBA for the issuance of these grants, following the model proposed in the “Save our Stages Act” introduced in July by Senators Amy Klobuchar (D-MN) and John Cornyn (R-TX).

An amount of $2 billion has also been made available specifically for businesses with fewer than 50 employees that meet the specified criteria.

Eligibility:

  • Eligible entities must have been fully operational as of February 29, 2020.

  • Entities must demonstrate that they had at least a 25% reduction in earned revenue during a quarter in 2020 compared with that same quarter in 2019 to qualify.

  • Live venue operators, promoters, theatrical producers, performing arts groups, movie theaters and talent representatives. Institutions such as nonprofit museums, botanic gardens, historic homes and zoos will also be eligible for these grants.

ORGANIZATIONS CANNOT RECEIVE A GRANT IF THEY receive more than 10% of gross revenue from federal funding in 2019, excluding amounts received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

Eligible entities also cannot have more than two of the following characteristics:

  • Own/operate in more than one country;

  • Own/operate in more than 10 states;

  • Employ more than 500 employees (full-time equivalent/FTE) as of February 29, 2020.

Grant specifics:

  • Grants initially issued by SBA will be the lesser of 45% of an entity’s gross revenue in 2019 or $10 million.

  • Initial grants are intended to cover costs incurred from March 1, 2020, through December 31, 2021.

  • Recipients will be able to use the funds for eligible PPP expenses, payments to independent contractors, advertising, state and local taxes and fees, production transportation, certain mortgage and debt payments, maintenance expenses and administrative costs.

  • Recipients will not be able to use grants to purchase real estate, repay loans issued after February 15, invest or re-lend funds or donate to political parties/candidates.

Applications:

***THE APPLICATION PROCESS NOT OPEN YET***

  • When applications become available, there will be two priority application periods. The first 14 days, only eligible entities that have lost more than 90% of gross revenue can apply

  • The next 14 days, only eligible entities that have lost more than 70% can apply.

  • A reserve of 20% of overall appropriated funds, $3 billion out of the $15 billion provided, will remain available for all other eligible entities to apply for after 28 days.”

Read more at:

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/shuttered-venue-operators-grant