The Shuttered Venue Operators Grant (SVOG) program was established to aid venues, performing arts centers, museum operators, movie theaters, and similar organizations affected by the COVID-19 pandemic. This program includes over $16 billion to be distributed by the Small Business Administration (SBA) based on applications and eligibility. As of July 26, 2021, $6.3 billion of funding was already disbursed.
The amount of grant funding given to an organization is based on 2019 revenue levels. For an eligible entity in operation on January 1, 2019, grants will be awarded for the lesser of 45% of 2019 gross earned revenue or $10 million. For eligible entities that began operation after January 1, 2019, the grant will be prorated and is still subject to the $10 million cap. SVOG funding will be reduced by any Paycheck Protection Program (PPP) funding that the organization received, regardless of the amount forgiven. Organizations that received SVOG funding are not eligible to receive subsequent PPP funding.
SVOG funding is allowed to be used for a broad range of purposes, such as:
- Payroll costs
- Rent payments
- Utility payments
- Scheduled mortgage payments (not including prepayment of principal)
- Scheduled debt payments (not including prepayment of principal on any indebtedness incurred in the ordinary course of business prior to February 15, 2020)
- Worker protection expenditures
- Payments to independent contractors (not to exceed $100,000 in annual compensation for an individual employee of an independent contractor)
- Other ordinary and necessary business expenses, including maintenance costs
- Administrative costs (including fees and licensing)
- State and local taxes and fees
- Operating leases in effect as of February 15, 2020
- Insurance payments
- Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production (though this may not be the primary use of funds).
Additional SVOG funding is available to first-round recipients that experienced a 70% or more loss in revenue for the most recent calendar quarter.
Once the application has been received by the SBA, email status updates will be provided throughout the granting process.
Time may be running out to take advantage of this program, as funds are limited, and demand for these grants has been strong. For more information and to move forward with this process, go directly to the SBA’s website here. If you have any questions about applying, understanding the qualifications, or the interplay with PPP, we’re here to help.
Matthew Burke, CPA, CFE
Matt specializes in providing Cerini and Associates’ diverse array of midsized business clientele and nonprofit organizations with valuable consulting and assurance services. He prides himself on value-added, responsive, and innovative service to his clients; with a focus on forward-thinking and creative solutions. Matt has more than seventeen years of experience with many types of complex accounting, auditing, compliance, and general business matters that impact entrepreneurial, established, and nonprofit businesses.
Mahnaz Cavalluzzi, CPA
Mahnaz has been a member of Cerini & Associates’ audit and consulting practice area for over 8 years where she focuses on serving nonprofit organizations, education, and healthcare clientele. Mahnaz has experience in financial statement audits, financial statement reviews, tax return preparation, cost report filing, and other consulting. Mahnaz brings her expertise, diversified background, and helpful approach to all of her engagements.