Previously, Congress approved $15 Billion to be set aside for ailing music venues due to the global Covid-19 crisis. Since then, a few increases have been passed, bringing the total to $16.5+ billion. The assistance is set to be released under the Shuttered Venue Operators Grant or the SVOG for short.
According to the Small Business Administration, the grant was “established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act“. With that being said, the grant includes over $16 billion in grants to shuttered venues and will be administered by SBA’s Office of Disaster Assistance.
Additionally, according to the official website, eligible applicants may qualify for grants equal to 45% of their gross earned revenue. Therefore, the maximum amount of which is available for a single grant award of a whopping $10 million. $2 billion is being reserved for eligible applications with up to 50 full-time employees.
Shuttered Venue Operators Grant
Use of the funds include the following expenses:
- 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 per 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. (May not be primary use of funds)
The Small Business Administration is administering the fund. Additionally, applications for the Shuttered Venue Operators Grant will be accepted starting April 8, 2021 here. According to the official SBA website: “Those who have suffered the greatest economic loss will be the first applications processed..” Ultimately, the applications will be run under the following schedule:
Furthermore, for more information check out the official Shuttered Venue Operators Grant homepage, here.
H/T – Mixmag