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*SVOG APPLICATIONS EXPECTED TO OPEN EARLY APRIL &
ENTITIES NOW ALLOWED TO APPLY FOR BOTH PPP & SVOG RELIEF FUNDING*
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The U.S. Small Business Administration (SBA) expects to begin accepting applications in early April for the Shuttered Venue Operators Grant (SVOG) program. An exact date has not been announced.
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The program will be further bolstered by the $1.9 trillion stimulus package signed into law by President Joe Biden this week, which allocated an additional $1.25 billion in funds for the SVOG program as well as $840,000 earmarked for the SBA staff to facilitate COVID-related programs, this will hopefully speed things along both with the application process and the distribution.
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The new economic relief package signed this week also extends eligibility for existing programs. Previously, the law forbade eligible entities such as venue operators from applying for both a Payroll Protection Plan loan after Dec. 27th, and a Shuttered Venue Operators Grant. The new law makes it possible for venue operators to receive both, provided the amount of the SVOG is reduced by the amount of PPP funds approved, regardless of whether or not the PPP loan is ultimately forgiven or not.
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For example, if a venue takes a $20,000 PPP loan, and then is later eligible for a $100,000 SVO grant the amount of the SVO Grant will be reduced by the $20,000 PPP loan amount… for a total of $80,000.
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NOTE: Entities wishing to apply for both, MUST apply for the PPP loan before receiving the SVOG grant, as entities will be ineligible for a PPP loan after they receive an SVOG.
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Please be aware that the application deadline for PPP loans is March 31, 2021, so this is a bit of a rush. I know many lenders have already closed their applications, but I am hopeful that we will see an extension in light of these recent developments. I recommend contacting your lender ASAP.
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I encourage you to read the entire updated FAQ Document, all revisions to the FAQ are accompanied by an asterisk. You can download the document below.
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The SBA has also issued an updated preliminary checklist of documents SVOG applicants may be required to submit. The revised checklist clarifies that eligible applicants that do not have an audited financial statement for 2019 are not required to provide one and do not have to comply with the requirement for a single audit unless they expended $750,000 or more in federal funds during 2019. You can read the entire updated checklist here.
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It’s nice to finally see some movement on these programs as well as some amendments to the guidelines that many arts advocacy groups have been asking for.
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Stay Tuned!
Lauren

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Long Island Arts Alliance | 720 Northern Blvd, Hillwood Commons #137, Brookville, NY 11548

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AAQ / Resource: The Maidstone

Hotel – Restaurant – Bar – Garden

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