Many business owners who own venues have had to close down their businesses due to COVID-19. Business owners like Sam Sundos, the general manager
Many business owners who own venues have had to close down their businesses due to COVID-19.
Business owners like Sam Sundos, the general manager of Brooklyn café and dance club Kinfolk told Rolling Stone, “It would’ve been a year of just costs with no revenue,”. They eventually closed down. That is the story for many business owners crushed under the impact of COVID-19
However, all hope is not lost, you may be able to get some money. The Shuttered Venue Operators Grants were established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act and further amended by the American Rescue Plan Act.
There is around $16 billion in funding that would be administered to shuttered venues by the SBA’s Office of Disaster Assistance. Shuttered Venues refer to places closed or limited in service due to COVID-19.
What Kind of Help Will Shuttered Venue Operators Grants Provide?
If you’re eligible you may receive 45% of your gross earned revenue, with the maximum amount available for a single grant award of $10 million. In addition to that, $2 billion is reserved for eligible applications with up to 50 full-time employees.
If your business has been in operation since January 1, 2019, the grant will be for an amount that is either equal to 45% of your 2019 gross earned revenue OR $10 million. Your grant amount is whichever is less.
For example, if your 2019 gross earned revenue is $5 million, you’d get 45% of that. However, if your gross earned revenue is say $30 million, 45% of that amount is more than 10 million dollars so the grant you’d receive is capped at 10 million dollars.
Just remember to keep four years’ worth of employee records after being given the grant as well as three years worth of other records.
Who Can Apply Shuttered Venue Operators Grant?
According to the SBA, the following are requirements to be eligible for the Shuttered Venue Operators Grants:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos, and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives
In addition to that, your business needs to satisfy these requirements:
- Each business entity owned by an eligible entity that also meets the eligibility requirements
- Must have been in operation as of February 29, 2020
- Venue or promoter who received a PPP loan on or after December 27, 2020, will have the SVOG reduced by the PPP loan amount
- Must have a DUNS number from Duns and Bradstreet
- Must be registered in the System for Awards Management (SAM.gov)
When Can I Apply for the Shuttered Venue Operators Grant?
You may have heard that the applications closed temporarily but they’re open now! You can apply for the grant here. However, before you apply you can prep all your documents and make sure you have your paperwork in order using the SVOG preliminary application checklist.
Shuttered Venue Operators Grant Issue Information
This grant will go out in phases with the hardest hit getting it first. That means those with 90% or greater loss, then the next 14 days with 75% or greater loss.
The next phase is the third phase and it is slated to begin 28 days after the first and second phase awards are made. The third phase, according to the SBA is for businesses with “25% or greater earned revenue loss between one quarter of 2019 and the corresponding quarter of 2020.”
Finally, there is supplemental funding which will be awarded after all the priority funding phases have passed. The supplemental funding is for businesses that were awarded the grant and suffered a 70% or greater revenue loss. This loss would have to be for the most recent calendar quarter which is April 1, 2021, and later.
What Can You Use the Shuttered Venue Operators Grant For
According to the SBA, you can use the grant money to cover the following expenses:
- Payroll costs
- Rent payments
- Utility payments
- Scheduled mortgage payments (but not a 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)
What You Can’t Use the Shuttered Venue Operators Grant For
You can’t use the grant to:
- Buy real estate.
- Make payments on loans that you took out after February 15, 2020.
- Make loans or investments.
- Fund politicians, political parties or political committees
- Any other use that is prohibited by the Administrator.
Need Help With Grants?
If you want to know more about the Shuttered Venue Operators Grant, you can watch our video for a breakdown.
Even before the pandemic, people needed more money for their businesses. If you’re constantly having issues making payroll, finding the funds to grow your business, and getting frustrated then start applying for grants.
For information about other grants, check out the grant category on our blog.
Many people apply for grants so you’ll need your application to stand out. You should download our Winning Grant Application Cheat Sheet & Checklist. This product is your step-by-step guide to writing a stronger and competitive grant application.
If you really want to maximize grant opportunities, we suggest the Win Grants With Ease Masterclass Bundle. With this ultimate guide, you’ll be able to access resources such as a masterclass and an ebook that will improve your chances of getting the grants you apply to.
Here is what some students are saying after accessing just the masterclass.
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