~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

IMPORTANT SVO GRANT UPDATES

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Small Business Administration (SBA) has released a list of FAQ’s that addresses a number of the questions you have all had regarding the Shuttered Venue Operators Grant. You can download the entire document here:
————

SHUTTERED VENUE OPERATOR GRANT FAQ

————
I have pulled answers to some of the more common questions we have received, including earned vs. contributed income clarifications, considerations of membership dues and facility rentals, and some other important eligibility requirements (for the museums asking what criteria they must meet)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

UPDATES AS OF 01/28/21

How are “earned revenue” and “gross earned revenue” being defined by the SBA?
————
Only monies organizations receive from the sale of goods or services are counted as earned revenue. This commonly accepted definition of earned revenue does not include other sources of funds that an organization may receive, such as donations, sponsorships, governmental assistance, or returns on investments. Gross earned revenue is the total of earned revenue from various sales of goods or services, such as admission tickets, merchandise, food and beverages, advertising sales and contracted presentation income.
————
Does a non-profit count contributions and grants revenue?
————
No. Both contributions and grants revenue would be excluded from an organization’s earned revenue. However, the SBA will take into account an organization’s Federal grants revenue to determine whether it meets the eligibility limit of having no more than 10% of its gross earned revenue from Federal sources, not including disaster assistance.
————
Does a non-profit count membership revenue?
————
Yes and no; like fundraising, the portion of membership cost that represents the estimated value of the goods or services provided as a condition of membership should be included in gross earned revenue. The portion of a membership cost that exceeds the estimated value of the goods or services provided as a condition of membership is considered a contribution and excluded from gross earned revenue.
————
Is from renting the venue for private events counted as earned revenue?
————
Yes, rental income from short-term rentals for event hosting should be included in earned revenue because they derive from standard commercial transactions for the paid use of facilities.
————
Is a venue with a multipurpose room with movable seating eligible to apply?
————
No. The Economic Aid Act specifically requires fixed seating and makes no allowance for temporary, removable, modular, convertible, or other non-fixed seating arrangements. As such, eligible entities required by the Act to have fixed seating cannot satisfy this requirement with other forms of seating.
————
Can an entity apply for a PPP loan now and decide later on the loan if it did not receive an SVOG? At what stage is a PPP loan considered “received”?
————
No. Per the Economic Aid Act, as well as how the PPP loan system operates, entities cannot apply for a PPP loan and SVOG at the same time. Entities must make an informed business decision as to which program will most benefit them and apply accordingly. If an applicant is rejected by one program, it will then be eligible to apply for the other.
————
SBA Shuttered Venues Website:
Please check the SBA website’s SVO section on a daily basis as they are posting new and corrected information by the minute at:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I encourage you to read the entire FAQ document. While we wait for the application portal to open, it would be in your best interest to register for a DUNS number so you can then register in the System for Award Management (SAM.gov). If you need help with this, contact your local SBA development for help:
Also, gather documents that demonstrate your number of employees and monthly revenues so you can calculate the average number of qualifying employees you had over the prior 12 months.
————
Lastly, determine the extent of gross earned revenue loss you experienced between 2019 and 2020. This and additional information such as floor plans, contract copies and other evidence will be needed to apply for an SVOG.
————
As always, if you have any questions, please do not hesitate to reach out. We expect the SBA to host an additional webinar with updates to the SVO program, and will notify you as soon as that becomes available.
————

Stay Safe!

Lauren Wagner
Director

————————-

============================================= 

AAQ / Resource: Sotheby’s International Realty

_________________________________________________________________________