SBA, SVOG FAQ v4 (Apr. 8, 2021)
Summary
This is the Small Business Administration's Shuttered Venue Operators Grant Program (SVOG) Frequently Asked Questions as of April 8, 2021. It says the program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020, and includes over $16 billion in grants to shuttered venues. Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with a maximum of $10 million for a single grant award, and $2 billion is reserved for eligible applications with up to 50 full-time employees. Applicants must register with the federal government's System for Award Management (SAM) at www.SAM.gov. The FAQ also lists permitted and prohibited uses of grant funds.
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Cite this document
“SBA, SVOG FAQ v4 (Apr. 8, 2021).”
Original at esd.ny.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/sba-svog-faq-v4-apr-8-2021-50a4ad98d2/
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The Small Business
Administration Shuttered
Venue Operators Grant
Program (SVOG)
Frequently Asked Questions as of April 8, 2021
Shuttered Venue Operators Grant awards who suffered a 70% or greater
revenue loss for the most recent calendar
(SVOG) Program
quarter (as of 04-01-21 or later)
The Shuttered Venue Operators Grant program was
established by the Economic Aid to Hard-Hit Small
Who is eligible and can apply for a grant?
Businesses, Nonprofits, and Venues Act, signed into
• Eligible entities may be live venue operators or
law on December 27, 2020. The program includes
promoters, theatrical producers, live performing
over $16 billion in grants to shuttered venues, to be
arts organization operators, museum operators,
administered by the SBA’s Office of Disaster
motion picture theatre operators, and talent
Assistance.
representatives, per the Economic Aid Act.
• Eligible applicants may qualify for SVO Grants
Additionally, entities of these types owned by
equal to 45% of their gross earned revenue, with
state or local governments (for example,
the maximum amount available for a single grant
museums or historic homes) are eligible to apply
award of $10 million.
if the governmentally-owned entity also acts
• $2 billion is reserved for eligible applications with
solely as a venue operator, museum, etc. and not
up to 50 full-time employees.
also include other types of entities.
• Your principal business activity must be the
When can I apply for a grant? organization, promotion, management, or hosting
• SBA is in the process of setting up the grant of live concerts, comedy shows, theatrical
program and is expected to begin accepting productions or other events by performing artists.
applications on April 8, 2021 via the Shuttered • You must have been in operation by February
Venue Operators Grant (sba.gov) portal. Those 29, 2020.
who have suffered the greatest economic loss
will be the first applications processed under the
When does a business have to have been
following schedule:
- First Priority (1st 14 days of grant
established to be eligible to apply for an
awards): Entities that suffered a 90% or SVOG?
greater revenue loss between April 2020 • The business must have been in operation as of
through December 2020 due to the February 29, 2020.
COVID-19 pandemic.
- Second Priority (Next 14 days of grant How long will this program last?
awards): Entities that suffered a 70% or • The program will last until the funding in
greater revenue loss between April 2020 exhausted.
through December 2020 due to the
COVID-19 pandemic. Is an entity that applied for and received a
- Third Priority (Beginning 28 days after Paycheck Protection Program loan in 2020
First & Second Priority Awards are eligible to apply for an SVOG?
made): Entities that suffered a 25% or • Yes.
greater earned revenue loss between one
quarter of 2019 and the corresponding Can an entity apply for a PPP loan after they
quarter of 2020. receive an SVOG?
- Supplemental Funding (Available after all
• No. Once they receive an SVOG award, they
Priority Periods have passed): Recipients can no longer apply for the PPP.
of First, Second, and Third Priority round
For more information, please visit esd.ny.gov
What disqualifies an entity from SVOG sale of tickets, promotion of events to the public,
eligibility? defined audience and performing space, lighting
rig, sound mixing equipment, employment of
• The following types of circumstances would
sound engineers, stage managers box office
preclude an otherwise eligible firm from an
managers, etc.).
SVOG:
- It does not have a place of business located
Is a restaurant/tavern/bar that features live
in the United States, does not operate
music eligible to apply?
primarily within the U.S., and does not make
a significant contribution to the U.S. economy • No, if the principal line of business is
through payment of taxes or use of American restaurant/tavern/bar operation rather than live
products, materials or labor. venue operation, the business would not be
- It was not in operation as of Feb. 29, 2020. eligible to apply for an SVOG.
- It applied and/or received for a PPP loan on
or after Dec. 27, 2020 What criteria will the SBA apply when
- It is a publicly traded corporation, or is determining whether a particular form of live
majority owned and controlled by a publicly entertainment constitutes a performing arts
traded corporation. event for an SVOG?
- It presents live performances or sells • The SBA believes “performing arts” as related to
products or services of a prurient sexual the SVOG program means events such as
nature. musical concerts, comedy shows, theatrical
- More than 10% of its 2019 gross revenue productions, dance performances, or other live
came from the federal government (not renderings of similarly artistic works.
counting disaster assistance)
Is a theatrical producer that stages
- It owns or operates venues, theatres,
museums or talent agencies in more than one
performances in multiple venues eligible to
country, owns or operates venues, theatres, apply?
museums or talent agencies in more than ten • Yes. Provided the venues a theatrical producer
states, AND it had more than 500 employees uses meet the qualifications listed in the
as of Feb. 29, 2020. Economic Aid Act (e.g., defined performance and
audience spaces, sound mixing equipment, a
Can a mobile, portable, or touring facility be lighting rig, etc.) there is no limit upon the number
a qualifying venue for an SVOG? of venues at which a producer may host events.
• Yes, any venue, including traveling tent shows
such as circuses and festivals, that meets all the
How a grant funds allowed to be used?
space related requirements in the Economic Aid • Grant funds may be used for:
Act (e.g., defined performance and audience - Payroll costs
spaces, lighting rig, etc.) will be considered an - Rent payments
SVOG-qualifying venue. If a particular venue - Utility payments
cannot meet these requirements, it is not eligible - Scheduled mortgage payments (not including
to apply for an SVOG. prepayment of principal)
- Scheduled debt payments (not including
Is a wedding/event venue eligible to apply? prepayment of principal) on any indebtedness
incurred in the ordinary course of business
• No. Per the Economic Aid Act and specific
prior to 02-15-20)
eligibility criteria applying to Live Venue
- Worker protection expenditures
Operators, wedding venue operators would likely
fail to meet multiple requirements (for example:
For more information, please visit esd.ny.gov
- Payments to independent contractors (not to operators?
exceed $100K in annual compensation per • Fixed seating is seating permanently fixed to the
contractor) floor or ground or which is so heavy or
- Other ordinary and necessary business cumbersome as to make removing it impractical,
expenses, including maintenance costs per the Economic Aid Act. Where fixed seating is
- Administrative costs (incl. fees and licensing) required for a museum auditorium or movie
- State and local taxes and fees theatre, a majority of the seating provided in that
- Operating leases in effect as of 02-15-20 space must meet the definition of fixed seating.
- Insurance payments
- Advertising, production transportation, and How is “promoter” being defined?
capital expenditures related to producing a • A promoter is an entity or individual that
theatrical or live performing arts production. organizes live events by performing artists and
(May not be primary use of funds.) carries out tasks (other than as a vendor or
service provider) such as renting a performance
How a grant funds NOT allowed to be used? site, contracting with artists or a production
• Grantees may not use award funds to: company for the performance, marketing events,
- Buy real estate. and collecting gate receipts.
- Make payments on loans originated after • A promoter must have:
02-15-20. - (1) a profit (net income or loss) interest in
- Make investments or loans. the live event’s presentation; and
- Make contributions or other payments to, - (2) sole or joint rights to control the
or on behalf of, political parties, political financial terms of the live event’s
committees, or candidates for election. presentation, use of the venue, and/or
- Any other use prohibited by the marketing of the event.
Administrator. • Promoters may own and/or operate live venues
or contract for space and may include festival
How is “principal business activity” being promoters or the promotion of live performing
defined? arts events at outdoor, festival spaces that have
• To determine a given firm’s principal business all the required characteristics of a qualifying
activity, the SBA will consider the distribution venue.
of an entity’s receipts, employees and costs
of doing business among the different lines of How is “theatrical producer” being defined?
business activity in which its business • A theatrical producer is an eligible individual or
operations occurred for the most recently entity (including the entity that employs the
completed fiscal year. An entity's principal performers in a theatrical production) which has
business activity will be the one in which it the responsibility for creating, producing, or
has the greatest combined amount of operating live theatrical productions and that
revenues, expenses, employees and work have either a non-passive profit (net income or
hours, assets, contracts, and other business loss) interest in a theatrical production (other
activity as compared to all its other lines of than as a vendor or service provider) or sole or
business. The SBA may also consider other joint rights to control a theatrical production.
factors, such as the distribution of patents, • Theatrical producers are responsible for
contract awards, and assets, as appropriate. functions such as negotiating debt or equity
financing with lenders or investors, financial and
How is “fixed seating” being defined as a tax reporting, and closing the production.
requirement for museums and movie theatre
For more information, please visit esd.ny.gov
• The term “theatrical producer” does not include • Mixing equipment is a sound mixer that mixes
individuals or entities that provide financial two or more audio signals together, provides one
support for a theatrical production without either or more output signals, allows adjustment of
a non-passive profit (net income or loss) interest levels and enhancement of sound with
or the control described above. equalization and effects, and creates monitor
How is “performing arts organization feeds.
operator” being defined?
• A performing arts organization operator is any How is “public address system” being
entity (including a theatrical management defined as a requirement for live venue
business) which meets the criteria established operator or promoter?
under the Economic Aid Act and whose principal • A public address system is an electronic system
business activity is to create, produce, perform, with at least one microphone, amplifier, and
and/or present live performances for audiences loudspeaker which increases the volume of a
in qualifying venues, including amphitheaters, human voice, musical instrument, or other
concert halls, auditoriums, theatres, clubs, acoustic sound source or recorded sound or
festivals, and schools. music.
How is “lighting rig” being defined as a
How are “cover charges” being defined as a requirement for live venue operator or
requirement for live venue operator or promoter?
promoter? • A lighting rig is a structure that holds lights in
• The SBA defines “cover charges” to encompass place for illuminating a stage or other defined
front door entrance fees, food or beverage performance space.
minimums, or other similar charges required to
gain admission to a venue, whether collected via How is “sound engineer” being defined as a
ticket sales, addition to a tab, or direct payment.
requirement for live venue operator or
promoter?
How is “defined performance space” being
• A sound engineer is an individual who helps to
defined for live venue operator or promoter?
produce a live performance by managing or
• A defined performance space is the distinct
enhancing source levels of sound, including by
physical space reserved solely for the
equalization and audio effects, mixing
presentation of a performance, such as drama,
reproduction, and reinforcement of sound.
music, dance, comedy, or other live performing
arts activity
How is “booker” being defined as a
requirement for live venue operator or
How is “defined audience space” being
promoter?
defined as a requirement for live venue
• A booker is an individual (e.g. a talent buyer) who
operator or promoter?
books bands or other performing artists for
• The defined audience space is the distinct
venues and fields inquiries from performing
physical area in which the audience experiences
artists and performing and their agents or
the performance for qualifying venues that host
representatives.
live performing arts events (not including
museums and movie theatres).
How is “stage manager” being defined as a
requirement for live venue operator or
How is “mixing equipment” being defined as
promoter?
a requirement for live venue operator or
promoter?
For more information, please visit esd.ny.gov
• A stage manager is an individual who supervises extent of gross earned revenue loss you
the performance space and physical aspects of a experienced between 2019 and 2020. This and
production and oversees the performance space additional information such as floor plans,
while a production is in progress. contract copies and other evidence will be
How is “security personnel” being defined as needed to apply for an SVOG.
a requirement for live venue operator or
promoter? Must applicants register in the System for
• Security personnel are individuals hired for a live Award Management (SAM.gov) or can they
event to provide protection and aid for attendees, use other identifiers like Individual Taxpayer
performers, and venue employees. Duties of Identification Numbers or Employer
security personnel may include monitoring the
Identification Numbers to apply for an
event, maintaining order, escorting attendees out
SVOG?
of events, and suppressing disturbances.
• SVOG applicants need to register with the
federal government’s SAM at www.SAM.gov to
How is “box office manager” being defined
apply and cannot use an ITIN, EIN, or other
as a requirement for live venue operator or
means of identification or registration. Interested
promoter? parties are encouraged to obtain a Dun and
• A box office manager is an individual who is Bradstreet (DUNS) number (a prerequisite for
responsible for overseeing the sale of all tickets SAM registration) as soon as possible. With a
or receipt of admission fees, and may include the DUNS number, interested parties then should
task of ensuring the security of payments immediately begin registering in SAM.gov, as the
exchanged. SAM registration may take up to two weeks once
submitted., a lender may consider whether a
How is “being paid fairly” for a performer seasonal borrower was in operation on February
being defined? 15, 2020 or for an 8-week period between
• Being paid fairly means that event performers are February 15, 2019 and June 30, 2019 when
paid in an amount based on a percentage of deciding eligibility of the borrower.
sales, a guarantee (in writing or standard
contract), or another mutually beneficial formal When will SVOG applications open?
agreement. Venues may also compensate • SBA is in the process of setting up the grant
performers by sharing an agreed upon portion of program and is expected to begin accepting
revenues received through door fees along with applications on April 8, 2021 via the Shuttered
drink or meal tickets that may fall below 1099 Venue Operators Grant (sba.gov) portal.
reporting requirements. For determining applicant eligibility for
priority periods, how is “revenue” being
What can an entity do to get ready to apply? defined?
• As the SBA works on building the application • The SBA will use gross revenues to determine
platform, it would be in your best interest to how an entity qualifies for one of the priority
register for a DUNS number so you can then periods.
register in the System for Award Management If the entity’s SVOG application is declined,
(SAM.gov). Also, gather documents that will an SVOG applicant be able to appeal or
demonstrate your number of employees and
request a reconsideration of the decision?
monthly revenues so you can calculate the
average number of qualifying employees you had • No. Given SBA’s history of never offering
over the prior 12 months. Lastly, determine the appeals for denied grant applicants in any other
For more information, please visit esd.ny.gov
program and the volume of expected SVOG Are fundraising event receipts considered
applicants, the SBA will not institute an appeal gross earned revenue?
process for denied SVOG applicants.
• In dealing with fundraising events, the SBA will
Furthermore, given the potential for demand for
follow the same general principles applied to tax
SVOG funding to outpace supply, establishing an
deductions for donations to charities. This means
appeal process for denied applicants might
that the portion of the amount an individual pays
further run the risk of tying up funding that could
in connection with a fundraising event which
instead go to eligible applicants in dire need of
represents the estimated value of the good or
timely assistance.
service they receive in exchange must be
How are “earned revenue” and “gross included in gross earned revenue. However, that
earned revenue” being defined by the SBA? portion of the amount such an individual pays
• As required by the Economic Aid Act, the SBA is that exceeds the estimated value of the good or
defining earned revenue and gross earned service they receive will be considered a
revenue (the two terms in the law) in accordance donation and is not included in gross earned
with common principals of the accrual method of revenue.
accounting. Using this, only monies organizations • For example, if a ticket to a fundraising dinner
receive from the sale of goods or services are costs $100 per person and the estimated value of
counted as earned revenue. This commonly the dinner provided is $50, then $50 of the funds
accepted definition of earned revenue does not generated from the fundraising ticket would be
include other sources of funds that an considered gross earned revenue and the other
organization may receive, such as donations, $50 would be considered a donation and would
sponsorships, governmental assistance, or be excluded from gross earned revenue.
returns on investments. Gross earned revenue is
the total of earned revenue from various sales of Does a non-profit count contributions and
goods or services, such as admission tickets, grants revenue?
merchandise, food and beverages, advertising
• No. Both contributions and grants revenue would
sales and contracted presentation income.
be excluded from an organization’s earned
How is “gross revenue” being defined by the revenue. However, the SBA will take into account
SBA? an organization’s Federal grants revenue to
• Gross revenue is functionally equivalent to determine whether it meets the eligibility limit of
‘receipts,’ which the SBA has defined under 13 having no more than 10% of its gross revenue
C.F.R. § 121.104 as meaning “all revenue in from Federal sources, not including disaster
whatever form received or accrued from assistance.
whatever source.” This will include contributions, Does a non-profit count membership
donations, and grants from any and all sources revenue?
(excluding any disaster assistance funding).
• Like fundraising, the portion of membership cost
Are donations / contributions included in that represents the estimated value of the goods
gross earned revenue? or services provided as a condition of
• No. Only earned revenue should be included in membership should be included in gross earned
calculations of gross earned revenue. Unearned revenue. The portion of a membership cost that
revenue, including donations and other gratuitous exceeds the estimated value of the goods or
contributions, such as foundation grants, services provided as a condition of membership
corporate sponsorships and individual gifts, is considered a contribution and excluded from
should not be included. gross earned revenue.
For more information, please visit esd.ny.gov
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