Shuttered Venue Operators Grant Information Session
Summary
Slides for the U.S. Small Business Administration's Shuttered Venue Operators Grant Information Session of March 30, 2021, covering SVOG background, eligibility, preparing to apply, the application, the notice of award, monitoring and audits. They state that SVOG was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed December 27, 2020, and amended by the American Rescue Plan Act, signed March 12, 2021, with over $16 billion in grants. The award basics give applications available April 8, 2021, funding of $16.2 billion, awards of up to $10,000,000, an estimated 15,000 awards and an estimated average award of $1,000,000.
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U.S. Small Business
Administration
Shuttered Venue
Operators Grant
Information Session
March 30, 2021
Meeting Logistics
• Listen only mode
• Meeting is being recorded
• Questions were accepted and
reviewed prior to the meeting
• General, novel questions not
answered during the session may
be added to SVOG Frequently
Asked Questions (FAQs)
3
Agenda
• SVOG Background and Award Basics
• Eligibility
• Prior to Application
• Application
• Notice of Award and Grant Funds
• Monitoring, Close-outs, and Audits
• Other Information and Next Steps
• Questions and Answers
4
SVOG Background
• Established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits,
and Venues Act, signed into law on December 27, 2020
• Amended by the American Rescue Plan Act, signed into law on March 12,
2021
• Administered by the Small Business Administration (SBA)
• Intended to provide relief in response to financial challenges from the
coronavirus (COVID-19) pandemic
• Includes over $16 billion in grants to shuttered venues
5
Notice of Funding Opportunity
• Posted in the Federal
Register Federal Register ::
Applications for New Awards;
Shuttered Venue Operators
Grants (SVOG)
• Includes definitions and
detailed grant information
• Applicants should read the
entire notice
6
Award Basics
• Applications available: April 8, 2021
• Information session: March 30, 2021
• Funding amount: $16.2 billion
• Award amount: Up to $10,000,000
• Estimated number of awards: 15,000
• Estimated average award: $1,000,000
SBA is not bound by any estimates in the Notice of Funding Opportunity.
7
Award Amount
• For an eligible entity in operation on January 1, 2019, grants will be
for an amount equal to 45% of their 2019 gross earned revenue OR $10
million, whichever is less.
• For an eligible entity that began operation after January 1, 2019,
grants will be for the average monthly gross earned revenue for each full
month you were in operation during 2019 multiplied by six (6) OR $10
million, whichever is less.
• Venue or promoter who received a PPP loan on or after December 27,
2020, will have the SVOG reduced by the PPP loan amount.
8
Priorities
• First priority
• First 14 days of grant awards
• Entities that suffered a 90% or greater revenue loss April-December 2020
• Second priority
• Next 14 days of grant awards
• Entities that suffered a 70% or greater revenue loss April-December 2020
• Third priority
• 30 days after first priority awards are made
• Entities that suffered a 25% or greater revenue loss between one
quarter in 2019 and corresponding quarter in 2020
9
Revenue Defined
• First and second priorities – gross revenue
• Third priority – earned revenue
What is included in revenue?
• Earned revenue – monies received from the sale of goods or services.
Does not include other funds such as donations, sponsorships,
government assistance or returns on investments.
• Gross earned revenue - 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.
• Gross revenue – all revenue in whatever form from whatever source.
Included contributions, donations, and grants (except disaster assistance).
10
Supplemental Funding
• Available after all priority periods
have passed
• Recipients of first, second, or third
priority round awards who suffered a
70% or greater revenue loss for the
most recent calendar quarter (April 1,
2021 or later)
• Information will be posted at a later
date
11
11
Small Business Set-Aside
During the first 59 days of
opening SVOG, SBA will reserve
no less than $2 billion of program
funding for grants to entities that
have not more than 50
employees.
12
Eligibility (Entities)
• 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
• Each business entity owned by an eligible entity that also meets the
eligibility requirements
13
Eligibility (Subsidiaries & Affiliates)
• A subsidiary is an entity that is either wholly or majority-owned and
controlled by another entity.
• Maximum of five business entities related via affiliation (for example,
one parent firm and four subsidiaries) can receive an SVOG.
• Only one SVOG application and award will be allowed per EIN.
• An eligible museum, and all other museums it operates as subsidiaries
may receive no more than $10 million combined under the program.
14
Eligibility (Principal Business Activity)
• The business activity in which the entity has the greatest combined
amount of revenues, expenses, employees and work hours, assets, and
contracts.
• Will consider the distribution of an entity’s receipts, employees and
costs of doing business among the different lines of business activity in
which its business operations occurred for the most recently completed
fiscal year.
• May also consider other factors, such as the distribution of patents,
contract awards, and assets.
15
Eligibility (General)
• Must have been in
operation as of
February 29, 2020
• Must have
documentation to
support eligibility
16
Entities Not Eligible
• Not in operation as of February 29, 2020.
• Does not have a place of business
located in the United States, does not
operate primarily within the U.S., and does
not make a significant contribution to the
U.S. economy through payment of taxes or
use of American products, materials or
labor.
• Publicly traded corporation, or majority
owned and controlled by a publicly traded
corporation.
17
Entities Not Eligible (cont.)
• Presents live performances or sells products or services of a prurient
sexual nature.
• More than 10% of 2019 gross revenue came from the federal
government (not counting disaster assistance).
• Owns or operates venues, theatres, museums or talent agencies in more
than one country, owns or operates venues, theatres, museums or
talent agencies in more than ten states, AND had more than 500
employees as of February 29, 2020.
18
Prior to Application
• Register in the System for Award
Management
• SAM.gov
• Sign up for updates at
svograntportal.sba.gov
• See Application Checklist for
required forms and documents
• Read Frequently Asked Questions
(FAQs)
19
Registrations
DUNS Registration
• Your organization must obtain a DUNS number.
• Call 1-866-705-5711 or go to dnb.com.
System for Award Management (SAM) Registration
• Register both DUNS number and tax ID number (TIN) with SAM.
• Takes approximately 7 business days but may take longer.
• Allow 24 to 48 hours for information to be active.
• Requires an annual registration – application will be flagged if
registration has not been updated. Updating may take 3 or more
business days.
20
Application Portal
Application portal will open
April 8, 2021
svograntportal.sba.gov
21
Application Due Date
• Applications are accepted on a rolling
basis
• Reviewed based on time of receipt
• SBA will determine, based on revenue
information, the priority phase the
application will be processed
• Grants will be awarded until all funds
are obligated
2222
Basic Application Process
• Create an account in the application portal
• Enter information in all required and
applicable fields
• Upload all required and applicable documents
• May upload .pdf, .jpg, .xls, .doc
• Application documents are saved throughout
the process
• Application not received by SBA until submitted
• SBA staff are not permitted to provide
assistance
23
Application Documents (Background Documents)
• Written Certification of Need
• Corporate documents (may include Articles of Incorporation,
Certificate of Existence, Certificate of Organization, State LLC
Agreement, Certificate of Formation or Articles of Information)
• Government issued photo ID (front and back) of the business
owner or a primary officer of the organization
• Employee list with job titles and employee status (full and part
time)
• Tax exempt documents (non-profits)
24
Application Documents (Financial Documents)
• 2019 Tax Return
• 2020 Tax Return, when filed (non-profit organizations that have a late
fiscal year must submit 2018 and 2019 tax returns)
• 4506-T
• Quarterly Income Statements for 2019 and 2020, signed by a primary
officer of the organization
• Payroll statements covering February 29, 2020
• Copy of most recent audited financial statement or Single Audit
(if applicable) or link to where the document can be located, if obtained
within the normal course of business in 2019
25
Application Documents (Standard Forms)
• SF-424B – Assurances for Non-
Construction Programs (found on
grants.gov)
• Certification of a Drug-free
Workplace
• SBA Form 1623, Certification
Regarding Debarment, Suspension, and
Other Responsibility Matters
• SBA Form 1711, Certification
Regarding Lobbying & Disclosure of
Lobbying Activities
26
Application Documents (Applicant Specific)
• Specific to each type of venue
27
Applicant Documents (Certification of Need)
• A good faith certification that the uncertainty of current economic
conditions makes the grant necessary to support the ongoing operations
of the eligible person or entity.
• If the entity is currently in operation, must state that the entity will
remain in operation after receipt of the funds. If the entity is currently
shuttered, the statement shall include the intent to reopen with an
estimated reopening date.
• All statements shall include an assurance that the entity was fully
operational on February 29, 2020.
28
Certification of Need Example
Due to the uncertainty of current economic
conditions, the SVOG is necessary to support the
ongoing operations of the Disco Live Venue Museum
Talent Company, LLC. DLVMTC opened its doors on
November 13, 1989. It is currently shuttered but
intends to reopen on April 26, 2021.
29
Proposed Award
• Based on the financial information entered
by the applicant, a proposed award amount
will be automatically calculated.
• This amount will appear as the “Proposed
Award.”
• SBA is NOT bound by the proposed award.
• If an applicant does not want the entire
award amount calculated as the proposed
award, the applicant may reduce this
amount in the proposed budget.
30
Proposed Budget
• Applicants will fill out a “proposed budget.”
• The proposed budget delineates how the applicant intends to expend
grant funds.
• Each proposed expenditure must be entered on a line that corresponds
to the allowable funding categories.
• The proposed budget must include ONLY proposed expenditures for
grant funds.
• The proposed budget cannot exceed the proposed award amount.
• If an applicant received a PPP loan after December 27, 2020, SBA will
reduce the proposed budget by the amount of the PPP loan.
31
Electronic Submission
Applications for grants under this
program must be
submitted electronically, unless
you qualify for an exception to
this requirement in accordance with
the instructions in the Notice.
32
32
Application Status
• Application is not submitted until the application status is “Submitted”
• Applicants will be notified of a status change
• Applicants must log into the system to review the change in status
• Application status prior to award:
On Hold
Final Approved
Submitted (Do Not
Review or Declined
Pay List)
33
Do Not Pay List
• Federal agencies may not award grants to (or otherwise do business
with) individuals or companies on the Do Not Pay List.
• SBA will check the Do Not Pay List multiple times during the application
process.
• If an applicant appears on the Do Not Pay List, the applicant has 30 days
to clear its name.
• The applicant must upload evidence that the Do Not Pay List hold has
been cleared.
• If the applicant does not clear the Do Not Pay List hold in 30 days, the
application will be declined.
34
Notice of Award
35
Notice of Award (cont.)
• Provides the name and general information of the grantee
• Contains terms and conditions of the grant
• Project period and budget period will be 1 year from the date of the
Notice
• Award amount
• Approved budget
• Special conditions
• Information about disbursements
• Requirement to submit 2020 taxes
• Other conditions based on application information
• Must be signed and uploaded
36
Approved Budget
• Enter how you plan to use proposed grant
funds within allowable use of funds
• Proposed budget will be finalized by SBA as
the approved budget (PPP deducted)
• Applicant required to report on
expenditures according to approved budget
37
Program-Specific Assurances
• Applicant must initial each
individual assurance
• Applicant must also provide a
full signature
• Any misrepresentation
initialed may lead to a False
Claims Act action
• Must be uploaded with signed
Notice of Award
38
Grant Disbursements
• Dependent on multiple factors determining risk
• Lowest risk may have one disbursement (lump sum), with submission of
2020 tax returns
• Moderate risk will have 2-3 disbursements
• Highest risk will have 3-4 disbursements
39
Allowable Use of Funds
• 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)
40
Allowable Use of Funds (cont.)
• 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)
41
Unallowable Use of Funds
• Purchase real estate
• Make payments on loans
originated after February 15, 2020
• Make investments or loans
• Make contributions or other
payments to, or on behalf of,
political parties, political
committees, or candidates for
election
• Any other use prohibited by the
Administrator
42
Expending Grant Funds
• One year from the date of award to expend grant funds.
• Funds can only be used to pay allowable items of cost incurred
between March 1, 2020, and December 31, 2021.
• For Supplemental grants, grantees will have 18 months from the date
of its Initial Phase Award to expend its grant funds
• Supplemental funds can only be used to pay allowable costs
incurred between March 1, 2020 and June 30, 2022.
43
Cost Principles (General Assumptions)
Grantee assumes responsibility for:
• Administering grant funds efficiently and effectively
• Managing funds according to agreements, objectives, and terms of the
award
• Using accounting practices and consistent with Uniform Guidance cost
principles
• Providing adequate documentation for costs charged to the award
44
Cost Principles
• Costs must be allowable,
allocable, and reasonable
• Who is a prudent person?
• Reasonable and necessary
45
45
Monitoring
• All grants with multiple disbursements will be monitored
• Submit SF-425 (Report Type “Quarterly” and supporting documents in
order to receive subsequent disbursements
• SF-425 gives detailed budget information related to the approved
budget – report on expenditures for each budget category
• Supporting documents that verify expenditures must accompany the
SF-425
• Receipts, paid invoices, etc.
46
Grant Close-out
• SF-425 Report Type “Final”
• Report on expenditures in each
budget category
• Provide supporting documents
for expenditures
• Answer questions regarding
“performance”
47
Grantee Record Keeping
• Grantees are required to maintain
documentation demonstrating their
compliance with eligibility and other
requirements of the SVOG program.
• Employment records must be
maintained for four years following
the receipt of a grant and all other
records must be maintained for
three years.
48
48
Internal Audits
• Grants will be audited by SBA SVOG and SBA Office of Inspector General
(OIG)
• Grants may be audited by the Government Accountability Office (GAO)
• Audits may include all aspects of the application, eligibility, use of funds,
and reporting
• Grantees are required to cooperate with all audits
49
External Audits
• Grantees who expend $750,000 or more in Federal funds during its fiscal
year must receive an external audit.
• Non-profit entities must obtain a Single Audit.
• For-profit entities must choose a Single Audit or audited financials.
• Single audits must be uploaded to the Federal Audit Clearinghouse.
50
Enforcement Actions
In the case of fraud, waste, abuse, or
noncompliance with grant
conditions, SBA may:
• Seek repayment of funds
• Initiate legal action to collect funds
• Add individual and organization
names to the Do Not Pay List
• Initiate a False Claims Act action
• Refer the grantee to the Inspector
General
51
SVOG and PPP
• If an entity applied and was approved for a PPP loan prior to December
27, 2020, it is eligible to apply for an SVOG and the PPP loan has no effect
on SVOG.
• Entities were originally prohibited from receiving PPP and SVOG after
December 27, 2020, however the American Rescue Plan Act, which
became law on March 11, 2021, removed this restriction.
• The full amount of any PPP loan received on or after December 27, 2020,
must be deducted from an entity’s SVOG without regard to whether a
portion of that PPP loan was forgiven or not.
• Entities will be ineligible for a PPP loan AFTER they receive an SVOG.
52
Applicable Legislation and Regulations
• Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues
Act, P.L. 116-260
• American Rescue Plan Act,
P.L. 117-2
• Uniform Guidance, 2 C.F.R. 200
• False Claims Act, 31 U.S.C. §§3729-
3733
• Cash Management Improvement
Act of 1990, 31 C.F.R. 205
53
Information and Support
• SVOG Website (sba.gov/svogrant)
• SVOG Portal (svograntportal.sba.gov)
• SBA Resource partners (https://www.sba.gov/local-assistance)
• SBA District Offices for connection to community resources and
additional SBA programs
54
Next Steps
• Obtain and DUNS number
and register in SAM
• Collect documents on the
Application Checklist
• Read the Notice of Funding
Opportunity
• Sign up for updates at
svograntportal.sba.gov
55
SVOG Q&A
Thank you!
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