Shuttered Venue Operators Grants: Frequently Asked Questions (April 8, 2021)
Summary
Frequently asked questions on the Shuttered Venue Operators Grant (SVOG) program, as of April 8, 2021. The document explains that the SVOG program is Section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, signed into law on Dec. 27, 2020 as part of H.R. 133, the Consolidated Appropriations Act, 2021. It notes that the American Rescue Plan Act, signed on March 11, 2021, included SVOG amendments under Title V, Sec. 5006. Answers marked with an asterisk are new or updated from the April 6, 2021 version, and the document states that answers will be updated as program details are finalized.
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Shuttered Venue Operators Grants
Frequently Asked Questions | April 8, 2021
The Shuttered Venue Operators Grant (SVOG) program is Section 324 of the Economic Aid to Hard-Hit
Small Businesses, Nonprofits and Venues Act (Economic Aid Act) signed into law on Dec. 27, 2020, and
was part of H.R. 133 Consolidated Appropriations Act, 2021. To see the full text, download the PDF of the
enrolled bill, go to page 812 for the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues
Act (Division N, Title III) and then to page 841 for Section 324: Grants for Shuttered Venue Operators. The
American Rescue Plan Act, signed into law on March 11, 2021, included SVOG amendments under Title V,
Sec. 5006 to the Economic Aid Act.
Following are answers as of April 8, 2021 (those marked with * are new and/or updated from the April 6,
2021, version), to frequently asked questions about the SVOG program. These will be updated as new
information comes available and additional program details are finalized.
Contents
Eligibility .........................................................................................................................................................1
All Applicants .............................................................................................................................................1
Museum or Movie Theatre Operator .........................................................................................................7
Live Venue Operator or Promoter .............................................................................................................8
Talent Representatives ............................................................................................................................ 12
Definitions ..................................................................................................................................................... 12
Application.................................................................................................................................................... 16
Use of Funds ................................................................................................................................................. 27
Business Size/Employees ............................................................................................................................. 31
Revenue ........................................................................................................................................................ 33
Subsidiaries & Affiliates ................................................................................................................................ 37
Supplemental Phase .................................................................................................................................... 40
Eligibility
All Applicants
1. What is an “eligible entity” for an SVOG?
Eligible entities may be live venue operators or promoters, theatrical producers, live performing arts
organization operators, museum operators, motion picture theatre operators, and talent
representatives, per the Economic Aid Act. Additionally, entities of these types owned by state or
local governments (for example, museums or historic homes) are eligible to apply if the
governmentally-owned entity also acts solely as a venue operator, museum, etc. and not also include
other types of entities. For example, a city parks and recreation department that operated a
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bandstand in a public square along with running various nature parks would not qualify as an eligible
entity for an SVOG. Finally, each subsidiary business owned by an eligible entity that also meets the
eligibility requirements on its own rights will qualify as an eligible entity.
2. When does a business have to have been established to be eligible to apply for an SVOG?
The business must have been in operation as of February 29, 2020.
3. Is an entity not in business in 2019 but conducting business operations on Feb. 29, 2020, eligible
to apply for an SVOG?
Yes, if an entity was not in business during 2019 but was conducting business operations on Feb. 29,
2020, including incurring costs of necessary start-up, preparatory activities in the lead time before an
anticipated opening date, it is eligible to apply if it can show the required earned revenue loss. In
situations like this, the SBA will use the following alternative method for demonstrating revenue loss
based on the approach the Agency is using with the PPP: Firms not in operation in 2019 may qualify
for an SVOG if their gross earned revenues for the second, third, or fourth quarter of 2020
demonstrate a reduction of not less than 25% from their gross earned revenue for the first quarter of
2020. For firms that had commenced start-up operations but were unable to open as anticipated due
to the pandemic, they would only be eligible under this alternate method if they had earned revenue
in the first quarter of 2020 from sources such as advance ticket sales, merchandising, etc. Firms which
had been conducting business operations and incurring expenses in 2020 in a pre-opening capacity
but which had no earned revenue for the first quarter of 2020 would not be eligible to apply.
4. Is an entity that applied for and received a Paycheck Protection Program loan in July 2020
eligible to apply for an SVOG?
Yes, if an entity applied and was approved for a PPP loan prior to Dec. 27, 2020, it is eligible to apply
for an SVOG.
5. Is an entity that applied for a First Draw or Second Draw PPP loan on or after Dec. 27, 2020,
eligible to apply for an SVOG?
Yes. While entities originally were prohibited from receiving both forms of SBA assistance, the
American Rescue Plan Act, which became law on March 11, 2021, removed this restriction. However,
under the law, entities will be ineligible for a PPP loan AFTER they receive an SVOG.
6. No longer relevant / deleted per the American Rescue Plan being signed into law.
7. Is a mobile entity with no fixed performance space eligible to apply?
No. Among other requirements, the Economic Aid Act requires a venue to have defined performance
and audience spaces. If a particular venue cannot meet this requirement, it is not eligible to apply for
an SVOG.
8. What disqualifies an entity from SVOG eligibility?
The following types of circumstances would preclude an otherwise eligible firm from an SVOG:
• It 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.
• It was not in operation as of Feb. 29, 2020.
• It is a publicly traded corporation, or is majority owned and controlled by a publicly traded
corporation.
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• It presents live performances or sells products or services of a prurient sexual nature.
• More than 10% of its 2019 gross revenue came from the federal government (not counting
disaster assistance)
• It 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 it
had more than 500 employees as of Feb. 29, 2020.
• Five other firms with which it is affiliated have already received SVOG awards.
• It is a museum and other museums with which it is affiliated have already received $10 million in
SVOG funding.
9. If an entity is part of a private university, how will the SBA apply the SVOG eligibility barrier
that prohibits organizations which received more than 10% of their 2019 gross revenue from
Federal funding?
If a private university-based eligible entity lacks separate legal existence from its parent university, or
has separate legal existence but is majority owned and controlled by the university, it will have to
look to the gross revenue of its parent university when determining whether it passes the barrier
against having more than 10% of its 2019 gross revenue come from Federal sources (excluding
disaster assistance). If a private university owns less than a majority of an eligible entity with separate
legal existence, the entity only needs to consider whether more than 10% of its own 2019 gross
revenue came from Federal funding. NOTE: Public university-based eligible entities are not subject to
the 10% cap on the Federal share of their gross revenue because they are owned by state or local
governments.
10. If a museum or live venue operator or promoter is a sub-unit of a university without separate
legal existence, but a separate non-profit foundation exists solely to receive donations to the
university-owned museum or live venue operator or promoter, is that foundation eligible for an
SVOG even if it has no economic or business activity apart from receiving and passing along
donations?
No. Under such an arrangement the foundation’s principal business activity would be serving as a
fiscal agent for the university-owned museum or live venue operator or promoter rather than acting
as a museum operator or live venue operator or promoter as is required by the Economic Aid Act.
11. Does the SVOG eligibility exclusion of entities that received more than 10% of their 2019 gross
revenue from the Federal government apply to eligible entities owned by tribal, state or local
governments, including entities owned by public colleges and universities?
No. The Economic Aid Act establishes an alternate eligibility restriction for government-owned
entities. Under that, government-owned entities cannot contain any other government-owned
entities apart from the live venue operator or promoter, live performing arts organization operator,
museum operator, movie theatre operator, or talent representative. If the SBA applied the SVOG
eligibility rule restricting entities that receive more than 10% of their gross revenue from the Federal
government to government-owned entities, this would deny eligibility to all state-owned entities.
The Economic Aid Act explicitly makes such entities eligible (It appears no state receives less than
approximately 20% of its gross revenue from the Federal government), so the SBA is not applying this
rule.
12. For college and university-owned entities seeking eligibility, does the 10% federal funding
barrier include financial aid that is awarded to students such as Pell grants?
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Yes. Based upon the treatment given Pell grants by the Department of Education, they would be
included in the amount of Federal funding provided to college and university-owned entities that do
not have separate legal existence.
13. Can a mobile, portable, or touring facility be a qualifying venue for an SVOG?
Yes. Any venue, including traveling tent shows such as circuses and festivals, that meets all the space-
related requirements in the Economic Aid Act (e.g., defined performance and audience spaces,
lighting rig, etc.) will be considered an SVOG-qualifying venue. If a particular venue cannot meet
these requirements, it is not eligible to apply for an SVOG.
14. If an eligible entity has applied for or received any grants, loans, or other funding from a state
or local governmental relief program is it still eligible to receive an SVOG?
Yes. Receipt of pandemic-related or other assistance from state or local governments does not
disqualify an eligible entity from the SVOG program, though an eligible entity must ensure that it
does not claim any costs or expenses under its SVOG that it has already received reimbursement or
other payment for under another award or program.
15. No longer relevant / deleted per the American Rescue Plan being signed into law.
16. Are service and support companies that provide stages, lighting, sound, casts, and other
support for live performing arts events or which showcase performers or pre-packaged
productions to potential buyers eligible to apply for an SVOG?
No. The Economic Aid Act is designed to assist only those eligible entities identified in the statute.
SVOGs are not available for service providers that support eligible entities.
17. Are entities whose broader business operations include hosting live performing arts events,
such as agricultural fairs or party boats/pleasure cruises that feature concerts, eligible to apply
for an SVOG?
No. Only entities whose principal business activity is being a live venue operator/promoter/theatrical
producer/live performing arts organization operator, museum operator, motion picture theatre
operator, or talent representative are eligible for SVOGs under the Economic Aid Act. Although an
agricultural fair or entertainment cruise may include live performing arts events, their principal
business activity is something other than serving as one of eligible entity types in the statute.
18. Are eligible entities currently involved in bankruptcy proceedings eligible to apply for an SVOG?
Possibly. Eligible entities undergoing a reorganization form of bankruptcy (such as Chapter 11 or
Chapter 13) may apply for an SVOG if they entered bankruptcy after Feb. 29, 2020. However, entities
undergoing a liquidation form of bankruptcy (such as Chapter 7) are not eligible. In addition, SVOGs
made to entities undergoing reorganization bankruptcy may, in SBA’s discretion, be subject to
special restrictions or requirements designed to reduce the risk of loss of taxpayer funds.
19. Are entities located in US territories eligible to apply for an SVOG?
Yes. Under the Economic Aid Act, in addition to those located in states, eligible entities in the District
of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United
States (e.g., Guam, American Samoa, the U.S. Virgin Islands) are able apply for an SVOG.
20. Is an entity that received CARES Act funding eligible to apply? (previously #4 under Museums or
Movie Theatre Operator, thus moving questions 4-12 on March 5 version up one number)
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Yes. Per the Economic Aid Act, receipt of CARES Act funding does not disqualify an entity for SVOGs.
21. How will receiving a PPP loan affect an eligible entity’s SVOG award?
Per the American Rescue Plan Act, any entity that receives a PPP loan on or after Dec. 27, 2020
(whether First Draw or Second Draw), will have the PPP loan amount deducted from the SVOG
amount. For example, if a jazz club received a PPP loan for $10,000 on Feb. 1, 2021, and then applied
for and received an SVOG which, based on the amount of its earned revenue loss would have been
$100,000, the jazz club’s SVOG will be reduced by $10,000 and it will receive a $90,000 SVOG. Any PPP
borrower that received a PPP loan before Dec. 27, 2020, however, will not have the PPP loan amount
deducted from any subsequent SVOG.
22. If a portion of my PPP loan was forgiven, will that affect how much of the loan amount is
deducted from my SVOG?
No. The full amount of any PPP loan received on or after Dec. 27, 2020, must be deducted from an
entity’s SVOG without regard to whether a portion of that PPP loan was forgiven or not. If the entity
received a PPP loan prior to Dec. 27, 2020, the PPP loan and/or its forgiveness status is not factored
into an SVOG.
23. What will the SBA do if an eligible entity has two or more business activities with essentially the
same level of combined revenues, costs, staff time, assets, contracts, etc.?
Where an eligible entity has multiple lines of business that are essentially tied regarding their share of
the entity's overall business activity, they will all be deemed its principal business activities.
24. Does a cruise ship count as a qualifying venue for promoters or producers to stage
performances on or for a talent representative to book performers on?
It is possible. A cruise ship may serve as a qualifying venue for the business activities of eligible
entities if it meets all the venue requirements established under the Economic Aid Act (defined
performance and audience spaces, lighting rig, mixing equipment, etc.), but a cruise ship would not
be eligible for an SVOG itself.
25. Must a live venue operator, promoter, theatrical producer, live performing arts organization, or
talent representative stage all its events or book all of its clients at qualifying venues?
No. While an eligible entity must use qualifying venues for the majority of the events it stages or
books clients into, non-qualifying venues may also be used.
26. If an entity qualifies under two different categories of eligible entities (for example, a museum
and a live venue operator) which category should be used when applying?
If an entity can meet all the requirements for more than one type of eligible entity, it is recommended
the entity pick the entity type that gives the strongest case for eligibility or that best represents how
the entity views itself.
27. What is the “de minimis gross revenue” from the sale of products or services, or presentation of
any materials of a prurient sexual nature that allows an entity to be eligible for an SVOG?
Based on SBA policy in the area of eligibility for Agency financial assistance programs, 5% or less is
considered a de minimis amount of gross revenue.
28. *Upon further consideration this was revised; see: #37 above Eligibility > All Applicants.
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29. Are eligible entities owned by public universities, including municipally-owned colleges,
considered government-owned eligible entities for the SVOG program?
Yes. Eligible entities owned by public universities will be subject to all the same restrictions and
exceptions as other government-owned entities.
30. If a university owns and operates two eligible entities that are not separate legal entities from
the university, but are managed by two different university departments with their own budget
lines and professional staffing (though their budgets roll up into the larger university system
budget and staff members are university employees), may the two eligible entities each apply
for an SVOG if they meet all the required criteria?
Only if it is a public university. If the university is a private institution, it would be subject to the
restriction against the submission of multiple applications under a single EIN. In that case, both
entities would have to be combined into a single application submitted under the university’s EIN.
31. If an entity receives state funding that originated from the federal government, does this count
toward the 10% eligibility threshold for revenue from the federal government?
Yes, unless that funding originated as federal disaster assistance.
32. What types of tribal government-owned entities are eligible to apply?
Tribal-owned museums are eligible for SVOGs, consistent with the language Congress used in writing
the Economic Aid Act.
33. Because government-owned eligible entities generally operate as divisions of tribal, state or
local governments and do not have their own EINs or separate legal existence, will the SBA look
to the governmental owners of such entities for purposes of determining an applicant’s
principal business activity just as it will with privately-owned eligible entities that use a parent
company’s EIN?
No, the SBA will treat these entities separately in reviewing their SVOG applications to ensure
Congress’ intent to have these funds available to government-owned cultural institutions. The SBA
will confine its examination of the principal business activity of a government-owned eligible entity
to the operations of that entity itself and not more broadly consider the operations of its government
owner, even where the entity uses the government owner’s EIN.
34. Are government-owned eligible entities able to receive SVOGs during the first or second priority
periods?
No. Congress designed the first and second priority periods to assist the eligible entities that have
faced the most significant losses while having limited means to make up for lost revenue. Tribal, state
and local governments have access to taxpayer funds and other resources which private individuals
or organizations lack.
35. *Are performing arts groups like choirs, dance companies, etc. eligible for SVOG awards?
Yes, if they can meet the definition of a performing arts organization operator and all the relevant
eligibility criteria, such groups would be eligible for an SVOG.
36. *If an entity has no staff or payroll does it qualify for the program?
Yes. For example, an entity such as a promoter or talent representative that operated as a sole
proprietorship or single member LLC with no employees could be eligible for an SVOG. In such a case,
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it would use its SVOG funding for non-payroll costs such as the payment of rent, utilities, scheduled
debts, maintenance fees, taxes, etc.
37. *If an SVOG related business was previously owned or operated by an ineligible entity (for
example, a movie theatre owned by a national chain listed on a stock exchange) but has since
been sold or otherwise transferred to an owner or operator that does meet the eligibility
criteria could the transferred business serve as the basis for, or be included in, an SVOG
application?
Yes. The SBA will determine SVOG eligibility as of the date an entity submits its application for the
program. The fact that a venue, theater, etc. was previously owned or operated by an ineligible
organization will not affect an applicant’s eligibility for an SVOG.
Museum or Movie Theatre Operator
1. Is a museum or movie theatre with a multipurpose room with movable seating eligible to apply?
No. The Economic Aid Act specifically requires fixed seating for qualifying amphitheaters of museums
and motion picture theatre operators and makes no allowance for temporary, removable, modular,
convertible, or other non-fixed seating arrangements. As such, museums and motion picture theatre
operators cannot satisfy this requirement with other forms of seating. NOTE: There is no fixed seating
requirement for other types of eligible entities.
2. Is a museum or movie theatre with outdoor fixed seating eligible to apply?
Yes. The Economic Aid Act does not require qualifying venues to be indoors. If the venue meets the
applicable eligibility requirements, it should be eligible to apply for an SVOG.
3. Is a museum partially funded with state dollars eligible to apply?
Yes. While there are specific eligibility rules for entities owned by state or local governments, the
receipt of funding from a state government does not affect its eligibility.
4. Is a drive-in movie theatre without fixed seating eligible to apply?
No. Per the Economic Aid Act, a motion picture theatre operator must have at least one auditorium
with a motion picture screen and fixed audience seating, so a drive-in movie theatre is not eligible to
apply for an SVOG.
5. Will the SBA consider programming in museums’ seasonally-operated outdoor amphitheaters
provided regularly during when outdoor amphitheaters are open to be regular programming?
Yes. If a seasonally-operated outdoor amphitheater meets the standard of hosting an average of 4
events per month over the course of a year, the SBA may consider the museum to have provided
regular programming. For example, a museum with an outdoor amphitheater that is open 6 months
of the year and provides daily programming during that seasonal operation would meet the regular
programming standard because it had an average of 15 events per month over the course of a year of
operation (182 events per year divided by 12 months equals an average of 15 events per month).
6. If a museum has more than one qualified auditorium, theater, or lecture hall, does regular
programming need to occur in each, or is it sufficient to have regular programming across all
the qualifying presentation spaces?
A museum may aggregate programming across all such spaces for purposes of meeting the regular
programming requirement rather than looking at each qualifying presentation space individually if a
museum has multiple qualifying presentation spaces (auditoriums, theaters, or performance or
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lecture halls).
7. What happens if a motion picture theatre is owned by one entity, but operated (managed) by a
separate entity? Are both entities eligible for an SVOG in such a case? If so, what will the earned
revenues of the two companies be based upon?
Yes. Under the Economic Aid Act, owners and operators of motion picture theatres are considered
eligible entities. In cases where both the owner and the operator of a qualifying motion picture
theatre are awarded SVOGs, each will base its earned revenues upon its share of those payments
received as a condition of its ownership or operation of the motion picture theatre (e.g., space rental,
ticket sales, management fees, digital projection reimbursements, and other non-gratuitous
payments or transfers) as allocated by contract, lease, or other formal legal agreement. In such cases,
all earned revenues and claimed grant expenses must be tracked and accounted for separately to
avoid any overlap or double-counting.
8. Is a landlord who owns a shopping center that includes a movie theatre eligible to apply for an
SVOG given they ‘own or operate’ an eligible motion picture theatre?
No. Because a shopping center owner’s principal business activity would most likely be owning or
operating a shopping center rather than owning or operating a motion picture theatre, it is doubtful
it would be eligible for an SVOG.
9. *Upon further consideration this was revised and combined with a similar question: #37 above
Eligibility > All Applicants.
10. Could a company that operates multiple movie theatres with the same Employer Identification
Number on Feb. 29, 2020, obtain separate EINs for each movie theatre after that date to have
those theaters considered separate entities consistent with SBA’s treatment of ownership
transfers executed after Feb. 29, 2020?
No. Because these movie theatres were not eligible entities on their own on or before Feb. 29, 2020,
legal status changes after that deadline cannot be treated the same as ownership changes of eligible
entities made after Feb. 29, 2020. Under the Economic Aid Act, a person or entity must have been an
eligible entity as of Feb. 29, 2020, to qualify for an SVOG.
11. To qualify as regular programming, does the programming provided in a museum’s theater
need to be ticketed and open to the general public?
No. To qualify as regular programming, events held in a museum’s theater or lecture hall do not need
to be ticketed or open to all museum attendees.
Live Venue Operator or Promoter
1. Is a wedding/event venue eligible to apply?
It is not likely. Per the Economic Aid Act and specific eligibility criteria applying to Live Venue
Operators, it appears wedding venue operators would likely fail to meet multiple requirements (for
example: sale of tickets, promotion of events to the public, defined audience and performing space,
lighting rig, sound mixing equipment, employment of sound engineers, stage managers box office
managers, etc.).
2. Is a sports stadium or venue used for concerts and other live, non-sport performances eligible
to apply?
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It is not likely. While sports are not a form of performing art, if the operator of a sports stadium or
similar athletic arena can meet the statutory definition of an eligible entity under the Economic Aid
Act, including the requirement that its principal business activity must be the organization,
promotion, management, or hosting of live concerts, comedy shows, theatrical productions or other
events by performing artists, it should be eligible to apply for an SVOG.
3. Is a restaurant that features live music eligible to apply?
No, if the principal line of business is restaurant operation rather than live venue operation, the
business would not be eligible to apply for an SVOG.
4. Is a dinner theatre eligible to apply?
It is possible. A dinner theatre could qualify if its principal business activity is the organization,
promotion, management, or hosting of live concerts, comedy shows, theatrical productions or other
events by performing artists, rather than restaurant operations, and meets all other applicable
eligibility criteria.
5. Is a performing arts center owned and operated by a government, state college (as a college
department) eligible to apply?
Yes. State, county, and municipal government-owned entities, including colleges, may be eligible to
apply for an SVOG.
6. Is a company that uses 1099 (independent contractor) workers/talent (vs. W2) eligible to apply?
Yes. Per the Economic Aid Act, payments made to independent contractors as reported on an entity’s
Form-1099 are an allowable use of grant funds. As such, an entity that used independent contractors
would be eligible to apply for an SVOG.
7. We hire a lot of independent contractors for events; as a subsidiary service provider for or at
live venues and events, does this fit the talent placement eligibility?
No, this does not fit the definition of a subsidiary, but rather defines a secondary service provider.
The SBA does not believe a secondary service provider supplying support to qualifying venues meets
any eligible entity definition.
8. Is a theatrical production management business with revenue generated by the production
management eligible to apply (under the talent representative definition)?
It is possible. A theatrical producer may be eligible to apply for an SVOG even if less than 70% of its
revenue came from cover charges or ticket sales. Under the Economic Aid Act, it also may be eligible
to apply if, as its principal business activity, it has production tickets available for public purchase an
average of not less than 60 days before the performance date.
9. Is a talent agency that books actors at live venues, but does not operate a live venue, eligible to
apply?
Yes. A talent agency is eligible to apply if 70% of its operations is managing, booking or representing
performers who appear primarily at live venues. If it is less than 70%, it is not eligible to apply for an
SVOG.
10. Does a ticket broker or reseller qualify as a live venue operator or promoter?
No. The Economic Aid Act’s live venue operator or promoter definition requires an entity to have as
its principal business activity either: (1) Organizing, promoting, producing, managing, or hosting
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events by performing artists for which admission fees are charged and performers are paid based on
a percentage of sales, a guarantee, or other mutually beneficial formal arrangement; or (2) Publicly
selling tickets on average 60 days in advance of performing arts events for which performers are paid
based on a percentage of sales, a guarantee, or other mutually beneficial formal arrangement. While
ticket brokers or resellers do deal in tickets to performing arts events and may do so 60 days in
advance, performers are not paid from these transactions as the SBA reads the second prong of the
live venue operator or promoter definition to require. Further, as one of their commonly used names
implies and because they operate in the aftermarket, ticket brokers or resellers may be viewed not as
being principally in the business of selling tickets, but instead as being principally in the business of
reselling them. As such, ticket brokers or resellers do not meet the criteria found in the definition of
live venue operator or promoter.
11. What criteria will the SBA apply when determining whether a particular form of live
entertainment constitutes a performing arts event for an SVOG?
The SBA believes performing arts as related to the SVOG program means events such as musical
concerts, comedy shows, theatrical productions, dance performances, or other live renderings of
similarly artistic works. This is based on review of the Economic Aid Act text, SBA’s consultation with
other Federal agencies with area expertise and examination of definitions of what constitutes the
performing arts under Federal law.
12. Is an air show operator eligible to apply?
No. The live venue operator or promoter definition under the Economic Aid Act requires an entity to
either put on performing arts events at qualifying venues or sell advance tickets to performing arts
events at qualifying venues. While an air show is a form of live entertainment, in SBA’s opinion it does
not constitute a performing art. As such, air show operators do not qualify as live venue operators or
promoters.
13. If a venue’s box office is staffed by volunteers is it eligible to apply?
Yes. Among the criteria included in the live venue operator or promoter definition is a requirement
that a qualifying venue must engage at least one individual to perform at least two of the following
roles: sound engineer, booker, promoter, stage manager security personnel, and box office manager.
The Economic Aid Act does not reference any hired box office staff other than a box office manager
and does not absolutely require even that position. As such, the use of volunteers to staff a venue’s
box office would not preclude it from being eligible to apply for an SVOG.
14. Is a theatrical producer that stages performances in multiple venues eligible to apply?
Yes. Provided the venues a theatrical producer uses meet the qualifications listed in the Economic Aid
Act (e.g., defined performance and audience spaces, sound mixing equipment, a lighting rig, etc.)
there is no limit upon the number of venues at which a producer may host events.
15. The Economic Aid Act specifies artists performing at qualifying venues must be paid fairly and
not “play for free or solely for tips, except for fundraisers or similar charitable events.” Would
nonprofit organizations that host performances which include volunteer choruses and/or
student performers be able to meet this requirement?
Yes. Provided the events a nonprofit live performing arts organization stages are produced and
managed primarily by paid employees, the use of volunteers in the production casts would not
disqualify it.
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16. Does a live venue operator who qualifies as an “eligible person or entity” remain eligible for an
SVOG if that live venue operator has a minority investor (less than 51% ownership) that has
more than 500 employees, locations in 11 or more states, and locations in 2 or more countries?
Is that the only ownership/control-related grounds for disqualifying someone?
Yes. The Economic Aid Act speaks only of majority ownership and control in the context of the
disqualifying conditions related to being listed on a stock exchange or to the geographic scope of
operations and number of employees. There are no other control requirements in the statute.
17. Does a free music festival that earns revenue through sales of merchandise and concessions but
does not charge admission meet the requirements of either an eligible entity or qualifying
venue?
No. Under the Economic Aid Act, a live venue operator must, among other things, apply a cover
charge through ticketing or front door entrance fee or sell tickets an average of at least 60 days in
advance of performances to be eligible for an SVOG. Additionally, to serve as a qualifying venue, a
location must impose a paid ticket or cover charge to attend most performances.
18. If an entity is currently presenting only live online shows, does that count as currently in
business?
Yes. The SBA will consider venues operating in an online-only shows capacity as currently in business
if the entity meets the eligibility criteria for business operations prior to Feb. 29, 2020.
19. If an entity has a performance/music group (e.g. jazz orchestra) that goes on tour and is paid
performance fees for playing in other venues, can these performance fees be counted as part of
the earned revenues to meet the threshold of not less than 70% of the earned revenue must
come from live event cover charges or ticket sales, production fees or reimbursements,
nonprofit educational initiatives, or the sale of food, beverages, or merchandise?
Yes. These fees should be included in the earned revenue for all SVOG program purposes.
20. For an entity that stages both free and ticketed performing arts events, do food and beverage
and merchandise sales derived from the free events count toward the requirement that not less
than 70% of earned revenue must come from live event cover charges or ticket sales,
production fees or reimbursements, nonprofit educational initiatives, or the sale of food,
beverages, or merchandise?
Yes, assuming there was a paid ticket or cover charge required to attend most of the performing arts
events staged by the entity.
21. If a live venue operator, theatrical producer, promoter, or live performing arts organization
operator does not offer tickets 60 days in advance will that make them ineligible?
Not necessarily. The requirement that such entities offer tickets for purchase by the public an
average of at least 60 days in advance of performing arts events is just one option for proving SVOG
eligibility. The other option for such entities is to show that at least 70% of their earned revenue
comes from cover charges, ticket sales, production fees or reimbursements, nonprofit educational
initiatives, or sales of food, beverages, or merchandise derived from performing arts events.
22. If a nonprofit operates a theatre and stages live ticketed performances with the bulk of its
revenue coming from educational programs where the performers are not paid by ticket sale
revenue or cover charges, but as educators, is it eligible?
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It depends on whether the programs could be considered performing arts events and whether the
nonprofit can meet either the earned revenue percentage or advance ticket sales eligibility
requirement.
23. If an individual or entity owns a venue under one LLC (Venue LLC) and operates it under another
LLC (Operator) can it apply for an SVOG under one LLC and use the funds to pay costs associated
with both LLCs? For example, if Venue LLC received an SVOG award could it pay salaries
incurred under Operator LLC, which employs the staff that run the events at the venue, as well
as paying the mortgage and utility bills it owes?
No. Because neither LLC owns the other, neither LLC could be bundled into an SVOG award held by
the other. However, if the individual or entity which owned the two LLCs received an SVOG award
under its own name, they could include the revenues and costs of both LLCs in a combined grant.
Two or more separate legal entities can only be included in one SVOG award if one of them owns at
least 51% of the others or if a single entity or individual owns at least 51% of all of them. In such a
case, it would have to be the entity or individual that is the majority owner which applied for and
received the SVOG award.
Talent Representatives
1. Are both agents and managers considered talent representatives with respect to SVOGs?
Yes. Under the Economic Aid Act talent representatives can be agents and/or managers for
musicians, comedians, actors, or similar performing artist.
Definitions
1. How is “principal business activity” being defined?
The SBA is drawing from its years of experience in ascertaining a firm’s primary industry under the
SBA size regulations (13 C.F.R. § 121.107) to define “principal business activity.” To determine a given
firm’s principal business activity, the SBA 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. An entity's principal
business activity will be the one in which it has the greatest combined amount of revenues, expenses,
employees and work hours, assets, contracts, and other business activity as compared to all its other
lines of business. The SBA may also consider other factors, such as the distribution of patents,
contract awards, and assets, as appropriate.
2. How is “majority owned or controlled” being defined?
Across its various programs, the SBA defines majority ownership and control to mean that at least
51% of the ownership interests in an entity (regardless of its legal structure) are held by a single
individual or entity.
3. How is “fixed seating” being defined as a requirement for museums and movie theatre
operators?
Fixed seating is seating permanently fixed to the floor or ground or which is so heavy or cumbersome
as to make removing it impractical, per the Economic Aid Act. Where fixed seating is required for a
museum auditorium or movie theatre, a majority of the seating provided in that space must meet the
definition of fixed seating.
4. How is “museum” being defined?
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A museum is a public, tribal, or private nonprofit agency or institution organized on a permanent
basis for essentially educational, cultural heritage, or aesthetic purposes, that uses a professional
staff, owns or uses tangible objects, cares for the tangible objects, and exhibits the tangible objects to
the public on a regular basis. This includes aquariums, arboretums, botanical gardens, art museums,
children’s museums, general museums, historic houses and sites, history museums, nature centers,
natural history and anthropology museums, planetariums, science and technology centers,
specialized museums, and zoological parks. The SBA has based this definition on a few sources,
including the Economic Aid Act, which directs the SBA to define museum based on 20 U.S.C. § 9172,
as well as guidance published by the Institute of Museum and Library Services.
5. How is “regular programming” being defined as a requirement for museums?
While it may vary depending on the circumstances, generally the SBA is defining regular
programming to mean programming provided on an ongoing and near-continuous basis of an
average of at least four times a month over the course of a year in its qualifying theatre, lecture hall,
or similar venue.
6. Would heavy bleachers pushed back against the wall when not in use but never removed from a
theater qualify as fixed seating?
Yes. Any cumbersome seating not easily or regularly removed from a theater will be considered fixed.
7. How is “promoter” being defined?
A promoter is an entity or individual that organizes live events by performing artists and carries out
tasks (other than as a vendor or service provider) such as renting a performance site, contracting with
artists or a production company for the performance, marketing events, and collecting gate receipts.
A promoter must have: (1) a profit (net income or loss) interest in the live event’s presentation; and
(2) sole or joint rights to control the financial terms of the live event’s presentation, use of the venue,
and/or marketing of the event. Promoters may own and/or operate live venues or contract for space
and may include festival promoters or the promotion of live performing arts events at outdoor,
festival spaces that have all the required characteristics of a qualifying venue.
8. How is “theatrical producer” being defined?
A theatrical producer is an eligible individual or entity (including the entity that employs the
performers in a theatrical production) which has the responsibility for creating, producing, or
operating live theatrical productions and that have either a non-passive profit (net income or loss)
interest in a theatrical production (other than as a vendor or service provider) or sole or joint rights to
control a theatrical production. Theatrical producers are responsible for functions such as
negotiating debt or equity financing with lenders or investors, financial and tax reporting, and closing
the production. The term “theatrical producer” does not include individuals or entities that provide
financial support for a theatrical production without either a non-passive profit (net income or loss)
interest or the control described above.
9. How is “performing arts organization operator” being defined?
A performing arts organization operator is any entity (including a theatrical management business)
which meets the criteria established under the Economic Aid Act and whose principal business
activity is to create, produce, perform, and/or present live performances for audiences in qualifying
venues, including amphitheaters, concert halls, auditoriums, theatres, clubs, festivals, and schools.
10. How are “cover charges” being defined as a requirement for live venue operator or promoter?
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The SBA defines “cover charges” to encompass front door entrance fees, food or beverage
minimums, or other similar charges required to gain admission to a venue, whether collected via
ticket sales, addition to a tab, or direct payment.
11. How is “defined performance space” being defined for live venue operator or promoter?
A defined performance space is the distinct physical space reserved solely for the presentation of a
performance, such as drama, music, dance, comedy, or other live performing arts activity.
12. How is “defined audience space” being defined as a requirement for live venue operator or
promoter?
The defined audience space is the distinct physical area in which the audience experiences the
performance for qualifying venues that host live performing arts events (not including museums and
movie theatres).
13. How is “mixing equipment” being defined as a requirement for live venue operator or
promoter?
Mixing equipment is a sound mixer that mixes two or more audio signals together, provides one or
more output signals, allows adjustment of levels and enhancement of sound with equalization and
effects, and creates monitor feeds.
14. How is “public address system” being defined as a requirement for live venue operator or
promoter?
A public address system is an electronic system with at least one microphone, amplifier, and
loudspeaker which increases the volume of a human voice, musical instrument, or other acoustic
sound source or recorded sound or music.
15. How is “lighting rig” being defined as a requirement for live venue operator or promoter?
A lighting rig is a structure that holds lights in place for illuminating a stage or other defined
performance space.
16. How is “sound engineer” being defined as a requirement for live venue operator or promoter?
A sound engineer is an individual who helps to produce a live performance by managing or
enhancing source levels of sound, including by equalization and audio effects, mixing, reproduction,
and reinforcement of sound.
17. How is “booker” being defined as a requirement for live venue operator or promoter?
A booker is an individual (e.g. a talent buyer) who books bands or other performing artists for venues
and fields inquiries from performing artists and performing and their agents or representatives.
18. How is “stage manager” being defined as a requirement for live venue operator or promoter?
A stage manager is an individual who supervises the performance space and physical aspects of a
production and oversees the performance space while a production is in progress.
19. How is “security personnel” being defined as a requirement for live venue operator or
promoter?
Security personnel are individuals hired for a live event to provide protection and aid for attendees,
performers, and venue employees. Duties of security personnel may include monitoring the event,
maintaining order, escorting attendees out of events, and suppressing disturbances.
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20. How is “box office manager” being defined as a requirement for live venue operator or
promoter?
A box office manager is an individual who is responsible for overseeing the sale of all tickets or receipt
of admission fees, and may include the task of ensuring the security of payments exchanged.
21. How is “being paid fairly” for a performer being defined?
Being paid fairly means that event performers are paid in an amount based on a percentage of sales,
a guarantee (in writing or standard contract), or another mutually beneficial formal agreement.
Venues may also compensate performers by sharing an agreed upon portion of revenues received
through door fees along with drink or meal tickets that may fall below 1099 reporting requirements.
22. How is “talent representative” being defined?
A talent representative is an agent or manager for whom no less than 70% of their business
operations (as measured with reference to their overall revenues, costs, devotion of time, contracts,
and other indicia of business activity) involves the representation or management of two or more
artists or entertainers. These operations must involve booking or representing musicians, comedians,
actors, or similar performing artists primarily at live events staged in venues or at festivals in
exchange for compensation founded on the number of tickets sold or a similar basis (including flat
fee guarantees).
23. How is “disaster assistance” being defined and does it include stimulus checks, unemployment
insurance payments, loan forgiveness, or other forms of debt relief?
For purposes of the SVOG, if such assistance originated from funding provided under either the
Stafford Act (41 USC 5121 et seq.) or the CARES Act (Pub. L. No. 116-136) it would be considered
federal disaster assistance (even if it was delivered by a tribal, state or local government) and
excluded from an eligible entity’s gross revenue. If the funding came from any other source it would
have to be included in gross revenue. In no event would assistance of this sort be considered earned
revenue.
24. How are “worker protection expenditures” being defined?
Under the Economic Aid Act, worker protection expenditures are defined to mean an operating or
capital expenditure which helps an entity adapt its business activities to comply with guidance or
requirements issued by a Federal, state, or local health authority related to the maintenance of
standards for sanitation, social distancing, or any other worker or customer safety requirement
related to the COVID-19 pandemic. Such expenditures must be incurred between March 1, 2020, and
the date on which the COVID-19 national emergency declared by the President expires. Worker
protection expenditures may include the purchase, maintenance, or renovation of items such as a
drive-through window facility; a ventilation or air filtration system; a physical barrier such as a sneeze
guard; an expansion of additional indoor, outdoor, or combined business space; an onsite or offsite
health screening capability; and personal protective equipment.
25. How is the phrase “capital expenditures related to producing a theatrical or live performing
arts production” being defined for the cap on allowable expenses? Does this refer to build-outs
for a venue for the presentation of live performances in general, or just to those capital
expenditures related to one particular production?
The SBA interprets the restriction against SVOG recipients primarily using grant funds to pay
advertising, production transportation, and capital expenditures related to producing a theatrical or
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live performing arts production, concert, exhibition, or comedy show as referring to all such costs in
general rather than those relating only to one specific production or show.
Application
1. What can an entity do to get ready to apply?
As the SBA works on building the application platform, it would be in your best interest to reference
the SVOG Eligibility Requirements and register for a DUNS number so you can then register in the
System for Award Management (SAM.gov). 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. Next, determine the amount of gross revenue loss you suffered
between 2019 and 2020 to see if you qualify for one of the priority periods. Lastly, calculate the extent
of gross earned revenue loss you experienced between 2019 and 2020 to see if you qualify for the
non-priority period. This and additional information such as floor plans, contract copies and other
evidence will be needed to apply for an SVOG and can be found in the SVOG Preliminary Application
Checklist (this is a preliminary list and not all-inclusive).
2. Must applicants register in the System for Award Management (SAM.gov) or can they use other
identifiers like Individual Taxpayer Identification Numbers or Employer Identification Numbers
to apply for an SVOG?
SVOG applicants need to register with the federal government’s SAM at www.SAM.gov to apply and
cannot use an ITIN, EIN, or other means of identification or registration. Interested parties are
encouraged to obtain a Dun and Bradstreet (DUNS) number (a prerequisite for SAM registration) as
soon as possible. With a DUNS number, interested parties then should immediately begin registering
in SAM.gov, as the SAM registration may take up to two weeks once submitted.
3. When will SVOG applications open?
The SBA expects open SVOG applications on April 8, 2021. We encourage you to stay up to date by
frequently visiting www.sba.gov/svogrant for information.
4. If an eligible entity is a hybrid nonprofit/governmental entity, should it apply under the
nonprofit’s name and submit documentation demonstrating the public/private partnership
aspect of its structure?
Yes. The SBA agrees that would appear to be the best approach to take under such circumstances.
5. If all SVOG program funds are expended during the program’s initial phase, what will the SBA
do with regard to making supplemental awards?
If all SVOG funding is expended during the program’s initial phase (or funds run out before the SBA
can make fully funded supplemental awards to all eligible entities), the SBA intends to issue zero
dollar ‘placeholder’ supplemental awards that could subsequently be modified to add funds in the
event Congress appropriates additional monies for the program. Under this approach, an eligible
entity that received a zero-dollar placeholder grant would still be entitled to the six-month extension
afforded to recipients of supplemental phase awards.
6. How will capital funds, restricted grants, or investment income affect an entity’s SVOG
application?
The SBA will take such financial resources into consideration when the Agency is examining an
eligible entity’s gross revenue. For example, the SBA will consider such sources of revenue for
purposes of determining whether an applicant meets the requirement that no more than 10% of its
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2019 gross revenue came from the Federal government (excluding disaster assistance) or
determining whether it can demonstrate sufficient gross revenue loss to qualify for one of the priority
periods.
7. What will be the timeline of distribution for the funds the SBA reserves for the small employer
set-aside? Will the SBA fund small employer awards only during the non-priority period of the
Initial Award Phase?
To ensure the SBA can carry out Congress’ intent that at least $2 billion worth of SVOGs go to small
employers, the SBA will draw upon the small employer set-aside funds throughout all stages of the
Initial Award Phase. For example, where an eligible entity qualifies for the First Priority Period also
qualifies as a small employer, the SBA will fund that grant using monies drawn from the small
employer set-aside. To better facilitate the SVOG funding to small employers throughout all stages of
the Initial Award Phase, the SBA is considering using its authority under the Economic Aid Act to set-
aside more than the $2 billion minimum that must be reserved for such purposes.
8. If ownership of an eligible entity was transferred prior to Feb. 29, 2020, could the new owners
apply for an SVOG and use the revenues reported by the former owner? What about ownership
transfers that occurred AFTER Feb. 29, 2020 if the entity had been operational on Feb. 29, 2020?
Yes. Except where the new owner has any of the disqualifying characteristics specifically enumerated
in the Economic Aid Act (either being itself or being majority owned and controlled by a firm listed on
the stock market, that had more than 10% of its 2019 gross revenue come from Federal funding, that
owns or operates eligible entities in more than 1 country and more than 10 states and that employs
more than 500 people, or which presents sexually prurient live performances or derives more than de
minimis gross revenue from the sale of sexually prurient material), the SBA will consider the new
owner of an eligible entity to have stepped into the shoes of the prior owner for purposes of
qualifying for the SVOG program. In the event of such a transfer, SBA will permit the new owner to use
the prior owner’s revenues as its own if the transferred entity was operational on Feb. 29, 2020,
regardless of the date of the sale.
9. How did the SBA determine what “revenue” to consider for establishing priority period
eligibility?
Congress simply referenced “revenue” for the SVOG priority periods in the Economic Aid Act. General
rules of statutory interpretation require an agency to give meaning to every word where possible and
apply the word’s ordinary meaning. In the legislation, Congress used “revenue” in setting forth the
priority periods, not “earned revenue” and specifically used the term “earned revenue” in other
areas, illustrating its understanding of a distinction between the two terms and the ability to use the
limitation where Congress deemed it appropriate.
10. For determining applicant eligibility for priority periods, how is “revenue” being defined?
The SBA will use gross revenues to determine how an entity qualifies for one of the priority periods.
11. If the entity’s SVOG application is declined, will an SVOG applicant be able to appeal or request
a reconsideration of the decision?
No. Given SBA’s history of never offering appeals for denied grant applicants in any other program
and the volume of expected SVOG applicants, the SBA will not institute an appeal process for denied
SVOG applicants. Furthermore, given the potential for demand for SVOG funding to outpace supply,
establishing an appeal process for denied applicants might further run the risk of tying up funding
that could instead go to eligible applicants in dire need of timely assistance.
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12. Can affiliated entities use the same SAM registration to apply for up to five SVOGs or should
each affiliated entity that desires to receive a SVOG individually obtain its own SAM
registration?
With the exception of tribal, state or local government-owned eligible entities, each entity applying
for an SVOG must use its own SAM registration.
13. If an entity is disregarded for tax purposes and doesn’t file its own tax returns, should the
disregarded entity apply for an SVOG or should the entity that files tax returns apply for the
SVOG?
Assuming both entities have their own separate legal existence and each meets the eligibility
requirements under the Economic Aid Act, either could apply for an SVOG.
14. Would an individual or business face any penalties for applying for an SVOG if it is later deemed
to be ineligible for the program?
If an entity submits an honest, good faith application for an SVOG but is denied funding for failure to
meet one or more eligibility requirements, there would be no penalty and it would be free to apply
for other programs they may qualify for. If, however, an entity makes material misrepresentations on
its application as part of a fraudulent effort to obtain SVOG funding, it will have committed an act of
perjury and be subject to various civil and criminal penalties, as well as potentially being debarred
from doing business with the Federal government.
15. What are the reasons for which an entity’s SVOG application might be denied?
The SBA will reject an SVOG application where an entity: (i) submits an incomplete application; (ii) is
attempting to commit fraud against the Federal government; (iii) fails to meet the definition of an
eligible entity; (iv) lacks the required level of revenue loss; (v) possesses one or more of the
disqualifying conditions identified in the Economic Aid Act; is part of a group of affiliated entities that
currently has 5 active SVOG applications still pending; or (vi) all available SVOG funding has been
exhausted.
16. How will the SBA determine the amount of SVOG funding to award an eligible entity that started
business operations in January or February 2020 and has no 2019 revenues?
Like the manner in which a grant is determined for a firm that did not start in business until partway
through 2019, the SBA will award an SVOG applicant that began business operations in January or
February 2020 the lesser of the average monthly earned revenue for each full month it was in
business in 2020 multiplied by 6 up to a maximum of $10 million.
17. Will the SBA require audited financial statements as part of an SVOG application?
No, an audited financial statement is not required to apply for an SVOG award. However, where a for-
profit SVOG grantee expends more than $750,000 in Federal funding in one fiscal year it will have the
option of either providing a Single Audit Act audit or submitting an audited financial statement for
that fiscal year. The SBA will direct grantees that expend more than $750,000 in federal financial
assistance in one fiscal year to submit their Single Audit or audited financial statement during the
post-award oversight, monitoring, and audit phase that SBA will conduct after SVOG awards have
been issued.
18. Will applicants be able to save their applications while in progress and then return to finish and
submit them later?
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Yes. Applicants will be able to save their application at any point prior to submission and then resume
where they left off.
19. If someone submits an incomplete application will they have an opportunity to complete it?
There will not be an opportunity to submit an incomplete application, as the online application
system the SBA is developing will only allow complete applications to be submitted.
20. If a grant award is disbursed in installments, will the SBA obligate the funds for the award all at
once or will the obligation also be done in installments?
The full amount of each SVOG will be obligated when an award is issued, regardless of whether it will
be disbursed in installments. This will ensure that each SVOG is fully funded.
21. How will the SBA prioritize applications within each priority period? Will it be on a first-come,
first-served basis or will it be based on the size of the percentage of revenue loss suffered?
Within each priority period and the non-priority period, the SBA will process applications in the order
in which they were received.
22. What entity information submitted as part of the SVOG application will be disclosed to the
public?
The SBA will exclude any personally identifiable information (such as a Social Security Number) or
confidential business information about the entity (such as financial data) from disclosure under the
Freedom of Information Act, though such information may be shared with SBA’s Office of Inspector
General, the Government Accountability Office, and/or members of Congress in response to a proper
and official request. However, if an entity is awarded an SVOG, the SBA must report the amount and
the name and address of the entity (or person’s name and address if applied as an individual), in the
publicly searchable database USASpending.gov. To help ensure all confidential business information
is properly excluded, the SBA recommends marking any documents submitted that contain such
information with the phrase “Confidential Business Information.” As an alternative to marking the
document itself, the annotation “Contains Confidential Business Information” can be included in the
file name.
23. Will an SVOG recipient have to report the grant to the IRS as taxable income?
No. The Economic Aid Act specifies that SVOGs “shall not be included in the gross income of the
person that receives such grant.”
24. Will an SVOG recipient also be eligible for a grant under the Restaurant Revitalization Fund?
No. The American Rescue Plan Act details SVOG recipients are ineligible to apply for assistance under
the Restaurant Revitalization Fund.
25. Will venues that lack box office reports to submit with their applications (whether because they
are used by outside promoters or because they are smaller operations that retain fewer
records) be allowed to present other types of evidence that they host shows regularly, such as
the agreements with outside promoters?
Yes, other types of evidence such as those described should suffice.
26. Many venues have permanent infrastructure for hanging sound and lights as opposed to owning
in-house systems because some artists have their own equipment hung for every show. For acts
without their own gear, the venues rent equipment. Also, some venues may have sound
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systems permanently installed but do not have the receipts or the itemized insurance
statements showing insurance coverage. Can such venues satisfy the “proof of a sound system”
requirement through other types of evidence such as rental receipts, photographs, tech
specification sheets, production reimbursement receipts, etc.?
The SBA agrees that the suggested alternate types of evidence would be adequate proof that a venue
possesses the required equipment.
27. What documentation must a talent representative provide to verify they meet SVOG eligibility
requirements?
A talent representative applicant must provide a list of performing artists they booked or managed in
2019 that includes the venues for which they were contracted to perform, the city and state of the
venues and the performance dates. They must also submit a current roster of performing artists
which they book or manage that primarily work in live venues or festivals. This roster must also either
appear on the applicant's website or be published in print or online in an industry-recognized trade
publication registry. A talent representative applicant must provide fully executed contractual service
agreements (excluding rider provisions) between the talent representative and two artists, or signed
statements from two artists certifying the applicant represented them for live performances in 2019
and 2020. A talent representative must also provide fully executed contracts for live performances
that took place in a venue or at a festival in 2019 and 2020 for two artists the applicant managed or
booked.
28. For the list of current employees required on the applicant checklist, is “current” defined as
“the date of grant application submission”?
Yes. However, if the applicant furloughed everyone because they are shuttered, then the most recent
employee list prior to the venue being shuttered will be adequate.
29. Should a non-profit provide the ID of its president/CEO to meet the applicant checklist
requirement of a photocopy of the applicant’s ID?
A non-profit should provide the ID of the principal officer of the entity submitting the application, as
the photocopy of the applicant’s ID is a requirement that applies to all applicants.
30. If applying under one Employer Identification Number for multiple theatre locations, should
documentation required in the application checklist (pictures of the layout, projection booth,
box office reports, marketing media, etc.) be provided for each location?
Yes. The required information must be provided for each location covered by an SVOG application.
31. Does the applicant need to submit state tax returns for application or just federal tax returns?
Do the tax returns need to be signed and dated by the applicant?
Only Federal tax returns are required; they must be signed and dated copies of returns submitted to
the IRS.
32. If an entity has submitted its SAM.gov registration, but the registration is not yet officially
activated, can the entity still apply?
Yes. The requirement is that an entity must be registered in SAM.gov. In the SVOG application, the
entity will have to attest that it has submitted its SAM.gov registration to apply.
33. How can an entity check the status of its SAM.gov registration?
1. Go to https://www.sam.gov
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2. Select Log In
3. Select the Check Status tab in the main navigation
4. Enter its DUNS Number
5. Select Search to view status
34. If an entity received PPP loans in 2020 and 2021, does it only need to deduct the 2021 PPP
amount from the budget prepared for the SVOG application?
Yes. Any PPP loan received prior to Dec. 27, 2020 does not need to be deducted from an SVOG award,
even if the organization also received additional PPP loans after that deadline. To note, if a 2021 PPP
loan applicant is approved for an SVOG before the SBA issues a loan number for the PPP loan, the
applicant is ineligible for the PPP loan and acceptance of any PPP loan proceeds will be considered
an unauthorized use.
35. If an entity applied for a PPP loan after the American Rescue Plan Act became law but before the
PPP application form was updated, is it still eligible for an SVOG even though the PPP
application included a certification saying the entity would not apply for an SVOG?
Yes. All recipients of PPP loans are eligible to apply for SVOGs regardless of which PPP form they
used.
36. Is an entity required to fully fill out the budget section on the application form?
Yes, each part of the budget section must be complete when preparing the SVOG application or the
system will not let you advance to the next step. It is understood it may be hard to predict exactly
what how grant funds will be spent in the future and some variations from the proposed budget can
be approved post-award.
37. Apart from the Certification of Need, are there other certifications an entity must make to
receive an SVOG?
Yes. An entity will be required to submit several certifications and assurances, such as those
regarding lobbying, suspension and debarment, and drug-free workplaces, as part of its SVOG
application. Also, the Economic Aid Act requires that if an entity has between 500 and 10,000
employees and is awarded an SVOG, it must certify it will not break any existing collective bargaining
agreements during the grant term and for two years thereafter. Such an applicant also must certify it
will remain neutral in any union organizing efforts throughout the term of the SVOG.
38. For nonprofits that use a fiscal year to file annual Form 990 tax returns, the extended due date
for 2019 returns may not have yet transpired and 2019 and 2020 tax returns may not have been
filed; will the SBA accept a 2018 return?
Yes. Under these circumstances an eligible nonprofit entity may use its 2018 and 2019 tax returns.
39. Will the additional $1.25 billion the SVOG program received under the American Rescue Plan Act
be administered using the 80/20% allocation between priority and non-periods set by the
original program legislation, or will all new funding instead be added only to the ‘general
admission’ phase?
The additional SVOG funding Congress provided is added to the existing appropriation and the total
combined amount will be apportioned in accordance with the statutory scheme: 80% will be
allocated to the first and second priority periods with the remainder reserved for the non-priority
period. In addition, the SBA will set aside at least $2 billion for SVOGs to small employers.
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40. What practical tips can the SBA share with eligible entities if there are technical issues with the
portal on April 8?
Entities should make sure to save frequently, have the SVOG dedicated website –
www.sba.gov/svogrant - at the ready to refer to the application user guide, the most up-to-date FAQs,
technical support guidance and the March 30, 2021, application information session (under video
tutorials) as they go through the application process.
41. What file types will be accepted in the application system?
The application system will accept files that end in .pdf, .jpg, .jpeg, .doc, docx, .xls, and .xlsx with a
maximum file size of 35 MB per file.
42. Does an entity need to fill out a separate SF-424B or can it use the Financial Assistance
Certifications from its SAM.gov registration?
No. An entity does not need to fill out a separate SF-424B. To reduce burden on grant recipients,
SAM.gov centrally collects the standard financial assistance certifications and representations during
registration.
To view or download a copy of your entity's Financial Assistance Certifications, follow these steps:
• Enter https://www.sam.gov in your internet browser’s address bar.
• Select the Search Records tab on the main navigation bar.
• Under Quick Search, enter the unique entity identifier (currently the DUNS Number).
• Select the View Details button on the returned result.
• Select the Reps & Certs link under Entity Registration on the left navigation bar.
• Select the Financial Assistance Certifications Report link to download the grants
certifications.
43. Re: the need to submit February 2020 ticket reports; many ticket reports list only the dollar
amount of tickets sold for a performer rather than the actual ticket price because there can be a
range of ticket prices based on seating area and other criteria, so could an entity submit a
spreadsheet with a ticket report to outlines the different ticket prices for a show?
Yes. This would be an excellent option for demonstrating ticket prices and sales.
44. If local orders do not allow an entity to be open to the public, does being “open” or “in
operation” mean an entity is continuing what business operations it can (e.g. maintaining its
facilities and preparing to eventually reopen) despite not being able currently to host live
events?
Yes. This question is intended to establish whether an applicant entity is either currently in operation
to the extent that it can be, or that it plans to reopen or be in operation going forward and may thus
be eligible for SVOG funding.
45. What is required in the Statement of Need certification?
There is no set format for a Statement of Need certification because every eligible entity’s
circumstances are different. However, at a minimum the Statement of Need must include a good
faith certification that the uncertainty of current economic conditions makes a grant necessary to
support the ongoing operations of the eligible person or entity. In addition, if the entity is currently in
operation its certification must state that it intends to remain in operation after it receives the grant.
If the entity is currently shuttered, its certification must include a statement that it intends to reopen,
along with its estimated reopening date. Finally, all Statements of Need must indicate that the entity
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was conducting business operations as of Feb. 29, 2020. The following example is provided for
illustrative purposes:
“Due to the uncertainty of current economic conditions, a grant is necessary to support the ongoing
operations of SVOG, Inc., SVOG, Inc. started in business on Jan. 30, 1985, but was forced to close its
doors on March 15, 2020 due to the pandemic. If it receives a grant, SVOG, Inc. intends to reopen on
April 26, 2021 or sooner, as conditions and restrictions permit.”
46. If an entity contracts with another entity for the operation of its venue and that contractor
supplies all the necessary staff, should it list zero dollars in the SVOG application (Form 3515)
column for personnel costs?
Yes. Entities should only include costs actually incurred by the entity.
47. Does the $10 million cap on the combined value of awards received by a group of affiliated firms
only apply to applications from groups of museums?
Yes. A museum and up to four museums it owns at least 51% of may all receive SVOG awards, but the
total amount of funding issued to such a group cannot exceed $10 million. No other type of eligible
entity is subject to such a dollar limit cap.
48. Does an entity have to submit all its marketing materials – which can be voluminous - with its
application?
Eligible entities subject to the regular programming requirement (i.e., museums and movie theatres),
can upload materials that demonstrate they have presented an average of at least 4 events per
month per year (see #5 under Definitions in this FAQ). In addition, all applicants may submit a
document, such as a spreadsheet, that contains URLs linking to online copies of marketing materials
rather than submitting such materials as attachments.
49. Form 3515’s proposed budget template has “Fiscal” headers; should this be the entity’s fiscal
year or the federal fiscal year?
The word “fiscal” should not appear in the budget template column headings. Instead, those column
headings should just read “2019” and “2020.” The SBA is working to correct this portion of the 3515.
This format may be updated and additional instructions will be in the Applicant User Guide, posted at
www.sba.gov/svogrant.
50. How does an entity get a Data Universal Numbering System (DUNS) Number from Dun &
Bradstreet (D&B)?
1. Go to the Dun & Bradstreet site: https://fedgov.dnb.com/webform/
2. Select the link to request your DUNS Number via the web
3. Follow the on-screen instructions to check whether your business or organization already has a
DUNS number
4. Enter your business name and state and the validation text, then select Submit
5. If your business is listed, you can request the existing DUNS number
6. If it is not, you can request a new one
Note: there is no fee for getting a DUNS number to do business with the U.S. Government
51. What do I need to know to register at SAM.gov?
Review this overview presentation. New SAM.gov registrations normally take an average of 7–10
business days to process, but can take up to 30 business days during periods of peak volume. An
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entity can log into SAM.gov and use the SAM Status Tracker (under the Check Status tab) to quickly
check its status.
52. Is there guidance an entity can use to help it ensure it is properly filling out the Form 4506-T
(Request for Transcript of Tax Return) correctly?
Yes. The second page of the PDF version of Form 4506-T published on the IRS website includes line by
line instructions for filling it out. NOTE: SVOG applicants should use the unique 4506-T document
that will be posted at www.sba.gov/svogrant and reference the Applicant User Guide for additional
direction. Though an entity must fill in its own entity information, the SVOG specific document
includes certain pre-filled boxes required by the program and IRS.
53. Why do questions 18-27 on the application (Form 3515) read as though they only apply to venue
owners, but are addressed to live venue operators, theatrical producers, promoters, and live
performing arts organization operators?
The SBA apologizes for any confusion or misunderstanding created by the wording of these
questions. Because the process for amending approved forms can take some time, the SBA will likely
not be able to clarify Form 3515’s language before the application portal opens. However, we want to
emphasize these questions should be read as broadly referencing those venues used by an applicant
rather than more narrowly applying only to those venues owned by an applicant. Live venue
operators, producers, promoters, and live performing arts organization operators should all answer
these questions.
54. *What impact will it have if an entity applied for other assistance, such as a state grant, but it
won’t know the outcome of that before applying for a SVOG?
It should have no impact. Even if it did receive such assistance, no gross revenues received after Dec.
31, 2020 are relevant for purposes of the initial award phase of the SVOG program.
55. *Where will a non-profit entity fit into the application periods, as they don’t have a revenue loss
per se?
Qualification for the first and second priority periods is based upon the extent of the reduction in an
entity’s gross revenues between Apr. 1 - Dec. 31 of 2019 and 2020. Because gross revenue includes all
funds taken in by an entity other than federal disaster assistance, SBA is not aware of any reason why
a nonprofit entity could not demonstrate a reduction in gross revenue over this time frame.
56. *Should all eligible entities apply at once or should we wait until our designated priority
period/time to apply?
Awards will be made on a first come, first served basis and the SBA invites all eligible entities to apply
as soon as they can to establish their position in the queue. During each period of the initial award
phase, the SBA will start with the first application submitted that qualifies for funding under that
period and work its way through the queue chronologically.
57. *What is the difference between a Form 424 and a Form 424B?
A Form 424 is an Application for Federal Assistance used to apply for many federal grant programs.
However, this form is not used for the SVOG program. Instead, the SBA is using the specially designed
Form 3515 to accept applications for SVOG awards. A Form 424B is a set of assurances that a grant
recipient makes in advance of receiving its award affirming that it will comply with various policies,
laws, and regulations of the federal government. This form is required for SVOG applications.
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58. *What time frame should the proposed budget cover?
An applicant’s proposed budget should cover a 12-month period that will begin on the date of their
award.
59. *Is an entity’s NAICS code relevant for purposes of its SVOG application?
While the NAICS code an applicant operates in is not a determining factor for SVOG eligibility, it is one
of many pieces of information the SBA may draw upon when conducting a broad-based examination
of an applicant’s principal business activity.
60. *Can several people fill out one application and access it from different locations?
Only one person may have access to an entity’s SVOG application at a time, but it is possible that
multiple parties could collaborate on a single application if they did so sequentially rather than
concurrently.
61. *Can an entity have its accountant or adviser fill out its SVOG application?
While SBA’s goal when designing the SVOG program application was to create a form that could be
completed without the need for professional assistance or expertise, the issue of who fills out an
eligible entity’s SVOG application is a decision for the organization’s management and ownership.
62. *The application (Form 3515) asks if an applicant is wholly or partly owned by a firm that
possesses various disqualifying factors (i.e., listed on the stock exchange, operates in more
than 1 country and 10 states and has more than 500 employees). However, the Economic Aid Act
says that these disqualifying factors only apply in the case of majority ownership. Can you
clarify this matter?
SBA apologizes for the confusion caused by the wording of this portion of the Form 3515. We will
work to correct the phrasing as soon as possible. In the interim, applicants should read the term
"partly owned" in this context as meaning "majority owned."
63. *Will the SBA apply the governmentwide grant rules of 2 C.F.R. Part 200 to the SVOG program?
Yes, the SBA will apply the requirements of 2 C.F.R. Part 200 to all SVOG recipients, including
nonprofit organizations, for-profit companies, and tribal, state, and local government-owned
entities.
64. *Two different SVOG application questions ask us to upload floor plans. Do we really need to
upload the same file twice?
Yes. While we realize this may cause some inconvenience, there is not sufficient time to address this
issue in the infrastructure of the application portal. Where the SVOG application process may require
multiple uploads of the same documentation, please do so to ensure your application is complete.
65. *What is my Electronic Funds Transfer (EFT) Indicator (formerly known as the DUNS+4) if I only
have one bank account in my SAM.gov registration?
Most entities do not have multiple bank accounts and do not need to create a separate EFT Indicator.
If you have just one bank account associated with your SAM.gov entity registration, your EFT
Indicator is just 0000.
66. *What does the “date of operation” mean on the SVOG application?
In response to this application question, an entity should enter the date the entity began in business.
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67. *What is the difference between “applicant information” and “authorized representative
information?” The SVOG application asks me to provide both.
Applicant information refers to the eligible entity applying for an SVOG. Authorized representative
information refers to the actual person submitting an SVOG application on behalf of an eligible entity.
68. *The SVOG application appears to indicate that award amounts will be based on earned revenue
rather than gross revenue as is required by the Economic Aid Act. Can SBA clarify this?
We can confirm that SVOG award amounts will be based gross revenue, not earned revenue. The SBA
is updating the program guidance to make this point clearer.
69. *The SVOG application requires us to obtain and enter DUNS numbers for all our affiliates, even
if they aren’t covered by an SVOG application. Is it true that entities are not required to obtain
DUNS numbers for affiliates unrelated to our SVOG application?
Yes. Entities only need to list those affiliated firms, along with their DUNS numbers, that will be
covered by an SVOG application. Affiliates not related to any SVOG application (either submitting
their own application or included in a parent entity’s application) do not have to be identified.
70. *In the SVOG application question regarding whether a business was in operation as of Feb. 29,
2020 it says we should provide quarterly tax filings, financial statements, payroll documents, or
other supporting documentation. What constitutes “other supporting documentation”?
This is intended to be a catch-all category to invite applicants to provide any other type of
documentation they possess which they feel helps them to establish when the applicant entity began
business operations.
71. *The SVOG application says a venue floor plan, venue layout, or other evidence of a projector
and fixed audience seating must be attached to meet the eligibility requirement for at least one
auditorium with a motion picture screen and fixed audience seating. Is this needed for every
screen with fixed seating (if multiple) in each location or will one example per location suffice?
To document compliance with this eligibility requirement an applicant may attach a floor plan of a
venue, venue layout, or other evidence of a projector and fixed audience seating for ONE of the
screens with fixed seating at each covered location.
72. *The SVOG application refers to “payments to independent contractors not to exceed $100,000
in annual compensation for an individual employee.” However, independent contractors are
NOT employees. Can SBA clarify this?
The individual employees referenced in this item are the individual employees of an independent
contractor, as stipulated in the Economic Aid Act. The SBA did not mean to cause confusion in this
area and is updating its guidance to reflect this clarification.
73. *The SVOG application includes the Form 1386 in the list of required documents, but it appears
that form relates only to the EIDL program. Are SVOG applicants required to submit this form?
No. This item was erroneously included in the application and guidance documents. The SBA is not
requiring SVOG applicants to submit a Form 1386.
74. *The SVOG-specific Form 4506-T used for requesting tax return transcripts does not appear to
accommodate organizations whose 2019 fiscal year did not end on December 31, 2019. In the
FAQ update, SBA indicates that 2018 and 2019 nonprofit tax returns may be used in place of
2019 and 2020. Can you confirm this is the case?
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The pre-filled portions of the SVOG-specific Form 4506-T were required by the IRS and the SBA has no
ability to alter them. However, it is SBA’s understanding the pre-filled values will not prevent
applicants from being able to use their 2018 and 2019 tax returns to support their SVOG application
under these circumstances.
75. *The SVOG application requires me to upload a copy of my business license, however my
tribal/state/local government does not require me to have a business license. How should I
respond to this application entry?
If you are not required to have a business license under local law you may upload a document stating
“Business licenses are not required under local law” instead of providing a copy of a business license.
76. *How many performing arts events must a venue operator, promoter, producer, live
performing arts organization operator, or talent representative document in terms of
marketing materials, show listings, etc. as part of its application?
As part of their SVOG application, the types of eligible entities noted above must submit a sample size
of a dozen (12) show/event listings and marketing materials for performances they staged or
promoted over the course of 2019-2020.
Use of Funds
1. Can SVOG funds be used to refund customers still holding tickets for cancelled performances?
Yes, it appears this type of cost would qualify under the Economic Aid Act as a necessary and ordinary
business expense. As such, it should be an allowable use of grant funds to make refund payments to
patrons for cancelled shows.
2. Can SVOG funds be used to reimburse an owner who put their own money into the entity to
keep employees and operating expenses paid?
Yes. Owners of eligible entities may be fully reimbursed for personal funds they contribute(d) to an
entity to keep it in operation between March 1, 2020, and Dec. 31, 2021 (or June 30, 2022, if the entity
receives a supplemental phase award), provided sufficient documentation of the transfer and
expenditure of such funds exists. Without such documentation, claimed owner reimbursements will
be treated as compensation or distributions of profits and subject to the cap on such payments noted
in question 3 in this section.
3. How is owner compensation treated under the program?
Owner compensation, including distributions and dividends, will be treated as an ordinary business
expense by the SBA and thus payable using SVOG funds to the extent that the total amounts involved
do not exceed what an owner received in compensation in 2019.
4. Can grantees use SVOG funds to reimburse themselves for allowable expenses they already paid
going back as far as March 1, 2020?
Yes. The SBA believes this would be permissible under the Economic Aid Act.
5. Is debt refinanced or consolidated under a new lender, but existed prior to Feb. 15, 2020
considered an eligible expense? What about a line of credit or revolving loan that existed prior
to Feb. 15, 2020, but was drawn down after that date?
Yes. Payments toward debts recorded prior to Feb. 15, 2020, represent an allowable expense even if
the debt was refinanced or consolidated with other debts that existed prior to that cutoff date. Any
otherwise allowable debt consolidated with a debt that was not recorded prior to Feb. 15, 2020,
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would continue to be an allowable expense only to the extent of the original qualifying debt. Any
additional amount of indebtedness following the consolidation that is attributable to the
nonqualifying loan would not be an allowable expense. Additionally, payments on lines of credit or
revolving loan funds recorded prior to Feb. 15, 2020, but not drawn down until after that date would
also be an allowable expense. Where an existing line of credit or revolving loan fund was increased
after Feb. 15, 2020, only the pre-Feb. 15, 2020, amount would represent an allowable expense. SVOG
funds could not be used to make payments on any increase in the indebtedness.
6. Do ‘state and local taxes’ identified as allowable expenses include real estate taxes and
personal property taxes on buildings and equipment?
Yes. Where real estate taxes and personal property taxes are levied on buildings and equipment
directly related to eligible SVOG program operations they may be paid using grant funds. Taxes on
property and equipment owned by an eligible entity not directly related to its SVOG program
operations are not an allowable expense.
7. Do interest-bearing bank accounts fall into the category of investing funds?
No. Use of an interest-bearing bank account to hold SVOG funds would not constitute an
impermissible investment.
8. Can a grantee include the uncredited portion of an individual’s salary for whom it has received
an employee retention tax credit (ERTC) as an allowable expense under an SVOG?
Yes. Where an eligible entity receives an ERTC for one of its employees and that credit does not fully
cover the employee’s salary, SVOG funds may be used to pay the uncredited portion of the
employee’s salary. SVOG funds cannot be used to pay any portion of an employee’s salary covered by
an ERTC.
9. Will SVOG awards count toward the Single Audit Act threshold?
Yes. As a Federal grant program, all funds awarded under the SVOG will count toward an entity’s
requirement to comply with the Single Audit Act if it receives $750,000 or more in Federal grant
funding during a single fiscal year.
10. Will SBA consider audit costs to be an allowable expense?
Yes and no, depending on the audit threshold. Where an SVOG recipient is covered by the Single Audit
Act, it may charge a reasonably proportionate share of the costs of audits required by, and performed
in accordance with, the Single Audit Act to its SVOG. For SVOG recipients not covered by the Single
Audit Act, audit expenses will not generally be considered an allowable grant expense.
11. Is depreciation an allowable expense under SVOG?
Yes. The SBA will allow SVOG recipients to use grant funds to cover the cost of depreciation in
accordance with the principles outlined in 2 C.F.R. § 200.436.
12. How are “ordinary and necessary expenses” being defined?
Ordinary and necessary expenses will be defined using the IRS definition, as the Economic Aid Act
does not define ordinary and necessary expenses. Per the IRS, “an ordinary expense is one that is
common and accepted in your trade or business. A necessary expense is one that is helpful and
appropriate for your trade or business. An expense does not have to be indispensable to be
considered necessary.”
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13. How long will SVOG recipients have to use their grant funds?
Recipients who receive an SVOG in the initial phase will have one year from the date their awards are
disbursed by the SBA to use grant funds. If an eligible entity receives a Supplemental Phase SVOG,
they will instead have 18 months from the date their Initial Phase award was disbursed by the SBA to
expend all their combined grant funds (both Initial and Supplemental Phase awards). At the end of
the applicable deadline, SVOG grantees must return all unexpended SVOG funds to the SBA.
14. May SVOG funds be used to pay artist deposits and guarantees?
Yes. Understanding that artists are typically independent contractors paid out of ticket proceeds and
in many cases the proceeds are not available prior to the show closing so entities often use deposits
and/or guarantees to provide prior payments to artists, the SBA believes this use of SVOG funds is
authorized as an ordinary and necessary business expense.
15. Will an SVOG be disbursed in one lump sum or in multiple payments? If multiple payments are
used, what will the time frame be for payout?
Depending on the size of the award and other risk factors, some SVOGs will be disbursed in the form
of a single lump sum while others will be spread out over multiple payments. In general, most SVOGs
under $1 million are deemed to pose a low risk and will be disbursed in one or two installments.
Awards for larger amounts are deemed to be a higher risk and will be disbursed in two to four
installments. Where payment is made via installments, the schedule of payments will depend upon
the grantee’s submission of documentation of an SVOG recipient’s use of the initial fund
disbursement and their 2020 federal tax return. The SBA understands not all entities will file a 2020
federal tax return at the same time and will collect documents accordingly. In every case, installment
payments will not be made according to a specified calendar or a set amount of time. A grantee’s
disbursement will depend on how quickly it can provide the required documentation.
16. Is there a difference between the amount of time an SVOG recipient has to expend award funds
and the period of time during which they may incur allowable costs?
Yes. While a recipient of an Initial Phase SVOG has one year from the date of its award to expend its
grant funds, it can only use those funds to pay allowable items of cost incurred between March 1,
2020, and Dec. 31, 2021. Where an entity receives a Supplemental Phase SVOG, it will have 18 months
from the date of its Initial Phase Award to expend its grant funds, but it can only use those funds to
pay allowable costs incurred between March 1, 2020 and June 30, 2022.
17. Can SVOG funds be used to make payments on SBA-backed loans?
Yes. The Economic Aid Act states SVOG funds may be used for “scheduled payments of interest or
principal on any indebtedness or debt instrument.” Given the broad language used by Congress, the
SBA will treat payments on SBA-backed loans as an allowable expense under the SVOG program.
18. Can SVOG funds be used to make employees whole for temporary reductions in pay an
employer had to impose due to economic circumstances under the pandemic?
Yes. After further reflection, the SBA will apply a similar approach to that taken by the PPP. Where
employee salaries and wages were reduced for some or all of the period between March 1, 2020 and
Dec. 31, 2021 (or June 30, 2022 in the case of supplemental award recipients) due to economic
circumstances caused by the COVID-19 pandemic, an SVOG recipient may use grant funds to restore
the lost wages of its employees in whole or in part.
19. If SVOG is disbursed in several payments, does the grantee have one year from the date of each
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disbursement to use the funds?
No. Grantees will have one year from the date their SVOG award is issued to spend their funds, unless
they receive an extension following the issuance of a supplemental award.
20. If an entity receives a $1 million SVOG but also has a $300,000 PPP loan that gets deducted, will
it be deemed to have received more than $750,000 in federal financial assistance and be subject
to the Single Audit Act?
The SBA has previously stated PPP loan funds are not considered federal financial assistance as
delegated lenders disburse them and the government does not directly provide them (the
government provides the guaranty). As such, any PPP loan deduction taken from an SVOG award
would not be counted for purposes of determining if an organization has exceeded the Single Audit
Act threshold. However, Economic Injury Disaster Loan funds are considered federal financial
assistance, so an organization that received an EIDL or EIDL Advance, Targeted EIDL Advance and the
like, would have to add those funds to its SVOG award amount when determining if it had expended
more than $750,000 in federal financial assistance in one fiscal year.
21. Will making improvements/changes to bathrooms, HVAC etc. in response to COVID-19 be
eligible uses of SVOG funds?
Yes. These types of COVID-19 related expenses would be allowable as worker protection
expenditures.
22. Will applicants be required to stay within the limits of how they propose to spend the grant
funding, and will it matter if the final expenses comply closely with the budget provided or not?
Under current SBA grant policies, any changes from the budget that shift funds among approved cost
categories more than 10%, or which shift costs to a category not included in the approved budget,
require prior approval. Thus, while actual expenditures can vary from budget projections, depending
on the variance amount, grantees may have to request permission (and possibly submit a revised
budget) in advance. Given the unique nature and circumstances of the SVOG program, the SBA is
committed to exploring ways to potentially liberalize this policy as it applies to SVOG recipients.
23. Will artist deposits/guarantees from promoters who hold then disburse the money to multiple
artist clients, count as contractors for booking agencies and, if so, will it be limited to the
$100,000 payment for an independent contractor?
No. Talent representatives or other entities acting as fiscal transfer agents on behalf of individual
artists will not be considered independent contractors for purposes of the $100,000 payment limit.
Instead, the SBA will consider the relevant independent contractor in such cases to be the individual
artist represented by the talent agent or manager.
24. Will credit card payments be considered scheduled debt payments that can be paid from SVOG
funds?
No. However, individual credit card charges that relate to allowable expenses such as utility
payments, worker protection expenditures, or other ordinary and necessary business expenses and
which were incurred between March 1, 2020 and Dec. 21, 2021 (or Jun. 30, 2022 if the entity receives a
supplemental SVOG award) are payable or reimbursable from grant funds.
25. Are all customer refunds from 2020 due to cancellations a valid use of funds? If so, what
category will that fall under?
Yes. Such expenses should be listed under the “Other” category.
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26. Are all owners' distributions and wages from 2019 a valid use of funds? If so, what category will
that fall under?
No. Only costs incurred after March 1, 2020 are allowable.
27. How will the SVOG award funds be delivered to the recipients?
Entities will submit their bank information as part of the SAM.gov registration process, and, upon
confirming the grant award, the SBA will process the funds (in whole or in part, depending on the
circumstance) through its internal accounting system and deliver them via ACH to the entity’s bank.
28. *Can funds be used to pay for construction projects such as a new roof and the like?
Only those construction costs that relate to worker protection expenditures (see the question and
answer on this topic in the Definitions section above) are payable using SVOG funds.
Business Size/Employees
1. How should an entity determine its employee count?
For employee count, the SBA is drawing on the Economic Aid Act’s specific provisions re: the
calculation of employees and decades of agency experience in counting employees under the SBA
size regulations (13 C.F.R. § 121.106). Employees that work at least 30 hours per week are considered
full-time. Employees that work between 10-29 hours per week are considered one-half of a full-time
employee. Employees that work less than 10 hours per week are not considered an employee. Once
the qualifying employees are determined, an entity must then calculate the average number of
employees it had over the prior year by adding up the number of qualifying employees in each
individual pay period and dividing that amount by the number of pay periods over the 12-month
period from Mar. 1, 2019 to Feb. 29, 2020.
For example, assume a firm paid its employees monthly and had the following number of qualifying
employees each pay period:
Mar 2019 – 9.5 full-time employees
Apr 2019 – 8 full-time employees
May 2019 – 9.5 full-time employees
Jun 2019 – 8.5 full-time employees
Jul 2019 – 10 full-time employees
Aug 2019 – 10 full-time employees
Sep 2019 – 7 full-time employees
Oct 2019 – 8.5 full-time employees
Nov 2019 – 7 full-time employees
Dec 2019 – 6 full-time employees
Jan 2020 – 7.5 full-time employees
Feb 2020 – 6 full-time employees
The sum of the firm’s full-time employees is 97.5. The firm would then divide 97.5 by 12 (the number
of pay periods) to determine its average number of full-time employees was eight.
2. Which priority or phase is number of employees considered?
There is no priority based on number of employees in the application process. Per the Economic Aid
Act, the $2 billion small employer set-aside for those with 50 employees or less is a separate aspect of
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the awarding process from the priority periods.
3. Are institutions of more than 500 employees eligible to apply for an SVOG if they meet other
eligibility criteria?
Yes, if they do not operate in either more than 10 states or another country.
4. For determining employee counts and the average number of employees, what should an entity
do if the date range doesn’t match neatly with the payroll schedule (e.g. biweekly)?
An entity’s average number of full-time employees will be determined with reference to each pay
period that falls, either in whole or in part, within the 12-month timeframe stipulated by the
Economic Aid Act. For example, if an entity’s biweekly pay period ran from Feb. 18, 2019, to March 3,
2019, that pay period would have to be considered when determining the entity’s number of full-time
employees, even though only three days of that pay period fell within the 12-month timeframe. In
this case, the entity would average the employee’s weekly hours for that pay period (considering the
days that fell outside the 12-month timeframe) to determine if they were a full-time employee in the
first covered pay period. If the employee worked 40 hours from Feb. 18-24, 2019 and 30 hours from
Feb. 25-March 3, 2019, their weekly average for that pay period would be 35 hours and they would be
counted as a full-time employee for the first pay period. Similarly, where the final covered pay period
falls in part outside the 12-month timeframe, the entity will look to the weekly average for the entire
pay period when determining whether individuals were full-time employees for that final pay period.
5. If an entity has a biweekly payroll schedule it will likely have some staff who work less than 10
hours for the first week of a pay period and more than 10 hours for the second week of a pay
period. Would the entity average their total hours over those two weeks to determine if they
were a full-time employee for purposes of that pay period?
Yes, when calculating their number of full-time employees, entities will use a weekly average of the
employees’ total hours over that pay period. For example, if an entity has a biweekly pay period and
an employee worked 10 hours the first week and 30 hours the second week, the employee would
have worked an average of 20 hours per week during that pay period and would be considered half a
full-time employee for that pay period. While the Economic Aid Act defines full-time employees in
terms of how many hours they work per week, for the small employer set-aside, the SBA will look to
the average number of full-time employees an entity has per pay period over the course of a set 12-
month period.
6. What is the full-time employee calculation used for?
The SBA will look to the number of full-time employees retained by an entity for three purposes: 1) to
determine whether the entity has more than 500 employees and thus may be ineligible for the SVOG
if it also meets other criteria; 2) to determine whether the entity has between 500 and 10,000
employees and is thus subject to the certification regarding labor rights; and 3) to see if the entity is
eligible for the small employer set-aside.
7. Do independent contractors count as employees for purposes of the small employer set-aside?
The SBA will consider the totality of the circumstances, including criteria used by the IRS for Federal
income tax purposes, in determining whether individuals are employees of a concern. Where the IRS
considers an individual to be an independent contractor rather than an employee, the SBA will do the
same and that individual will not be counted as an employee of the eligible entity for any purposes.
8. If an eligible entity is run by a management company does the owner report that it doesn’t have
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any employees, or is it required to include the number of individuals working for the
management company in its application?
As is the case with listing personnel costs, an eligible entity must only list its own full-time employees
on its application, if any.
9. Can a tribal, state or local government-owned eligible entity qualify for the small employer set-
aside?
Only if the tribal, state or local government as a whole employs 50 or fewer individuals. In making this
determination, the SBA will not restrict its consideration to only those individuals employed by the
government-owned eligible entity itself, even if it has its own EIN. Rather, the SBA will look to the
total number of all individuals employed by the tribal, state or local government owner.
Revenue
1. How are “earned revenue” and “gross earned revenue” being defined by the SBA?
As required by the Economic Aid Act, the SBA is defining earned revenue and gross earned revenue
(the two terms in the law) in accordance with common principals of the accrual method of
accounting. Using this, 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.
2. How is “gross revenue” being defined by the SBA?
Gross revenue is functionally equivalent to ‘receipts,’ which the SBA has defined under 13 C.F.R. §
121.104 as meaning “all revenue in whatever form received or accrued from whatever source.” This
will include contributions, donations, and grants from any and all sources (excluding any disaster
assistance funding).
3. Are donations / contributions included in gross earned revenue?
No. Only earned revenue should be included in calculations of gross earned revenue. Unearned
revenue, including donations and other gratuitous contributions, such as foundation grants and
individual gifts, should not be included.
4. Are fundraising event receipts considered gross earned revenue?
In dealing with fundraising events, the SBA will follow the same general principles applied to tax
deductions for donations to charities. This means that the portion of the amount an individual pays
in connection with a fundraising event which represents the estimated value of the good or service
they receive in exchange must be included in gross earned revenue. However, that portion of the
amount such an individual pays that exceeds the estimated value of the good or service they receive
will be considered a donation and is not included in gross earned revenue.
For example, if a ticket to a fundraising dinner costs $100 per person and the estimated value of the
dinner provided is $50, then $50 of the funds generated from the fundraising ticket would be
considered gross earned revenue and the other $50 would be considered a donation and would be
excluded from gross earned revenue.
5. Does a non-profit count contributions and grants revenue?
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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 revenue from
Federal sources, not including disaster assistance.
6. 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.
7. If a business provides talent representation and financial services for athletes and entertainers,
would it use total revenue or just the portion of sales from talent representation services?
The business would use gross earned revenue from all sources. It would also need to satisfy the
requirement that the principal line of business is talent representation versus financial services.
8. What is included in the 10% maximum for federal grants/funding?
The 10% maximum for federal grants/funding covers everything regardless of the use of the
grant/funding except disaster assistance.
9. Is rental income from tenants and income from renting the venue for private events counted as
earned revenue?
Yes, rental income from longer-term tenants and 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.
10. If an eligible entity has multiple lines of business activity, including a line(s) not covered by the
SVOG program, should it include earned revenue derived from those business lines?
Yes. If an applicant’s primary business activity places them within one of the categories of an eligible
entity under the Economic Aid Act, then they should use their gross earned revenue across all their
business activities and not exclude any non-SVOG revenue streams.
11. Is school tuition (e.g., charged by a dance school that operates a live venue) considered earned
revenue?
Yes. Tuition payments will be treated as earned revenue.
12. Will the SBA treat funds raised via capital campaigns differently than other types of fundraising
proceeds?
Yes. Given the unique nature and objective of capital campaigns conducted by nonprofits, the SBA
will exclude all funds raised via capital campaigns from calculations of earned revenue.
13. Will the SBA look to calendar year 2019 or fiscal year 2019 earned revenues as the basis for
calculating award amounts?
The SBA will permit applicants to use either their fiscal year 2019 or calendar year 2019 earned
revenues as the basis for determining the award amount for both Initial Phase and Supplemental
Phase SVOGs. Whichever option an applicant selects will apply to both award phases. Applicants
cannot use their fiscal year 2019 for one award phase and the calendar year for the other.
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14. Will earned revenue be analyzed/reported net of sales tax, returns, and discounts?
Yes. Amounts that represent the costs of taxes collected for and remitted to a taxing authority, or
returns, and post-sale discounts may be deducted from earned revenues.
15. Does the exclusion of disaster assistance funds only apply to funds received directly from the
Federal government?
No. Disaster assistance funds an eligible entity receives, whether directly from the Federal
government or indirectly through a tribal, state or local government, will be excluded from the
entity’s gross revenues. For example, if a state government received CARES Act funding from the
Federal government in a lump sum and apportioned it to make grants to small businesses, those
state-issued grants also would be excluded from an entity’s gross revenue. However, disaster
assistance funding provided by tribal, state and local governments that does not originate from
federal disaster assistance block grants, as well as disaster assistance provided by private entities,
will not be excluded from an applicant’s gross revenues.
16. Will the SBA treat funds derived from sponsorships as earned revenue or gross revenue? Will
sponsorship revenue be treated the same for for-profit and non-profit entities?
The treatment sponsorship revenue will receive will depend on whether an entity is a for-profit or
non-profit entity. Because it represents payment made in exchange for a service (i.e., recognition or
advertising), sponsorship payments (such as naming rights) received by for-profit entities will be
considered earned revenue. Like the treatment afforded memberships and fundraising events,
sponsorship payments received by non-profits will be considered part earned revenue and part gross
revenue. In such cases, the sponsorship payment amount a non-profit receives that represents a fair
market value for services in exchange (i.e. promotion, free admission, use of facilities) will be deemed
earned revenue and the portion of the sponsorship payment that exceeds that amount will be
deemed a contribution and thus gross revenue. For example, if a company gives $25,000 to a non-
profit and for that, gets its logo in a program, event admission and screen time on monitors at the
venue, then the “market cost” of those items are earned revenue and the remaining is gross revenue.
17. Will the SBA require entities to use the accrual method of accounting only when determining
their qualification for a priority period, or must they also rely on the accrual method for
establishing their award amount and/or non-priority period eligibility?
The accrual method of accounting is only required when determining whether an entity qualifies for
one of the priority periods under the Economic Aid Act. For all other purposes, an entity may rely
upon either the accrual or cash method of accounting.
18. How will the SBA categorize a partner’s standard, non-passive revenue (such as that reported
on an IRS schedule K-1)?
The SBA will include this type of revenue in the definitions of both gross revenue and earned revenue.
19. How will the SBA treat cases where all the revenue of an applicant that commenced business
operations and incurred costs in 2020 was refunded due to closures and cancellations brought
on by the COVID-19 pandemic?
In such cases, an applicant may include these refunded amounts in both its gross revenue and
earned revenue.
20. If an entity operates two separate sites, which in 2019 were operated by two separate entities
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but merged in January 2020, how should it treat its 2019 and 2020 revenues?
In cases of merged entities under circumstances such as this, entities should combine the revenues
from both organizations for 2019 and then use the revenues for the successor entity for 2020.
21. Should in-kind gifts be included in gross revenue?
Yes. Gifts or contributions of any type, whether cash or in-kind, must be included in gross revenue.
22. If an entity receives production fees and reimbursements from outside entities that put on
productions in its spaces and some of the events are business conferences, does the revenue
from these programs have to be excluded from performance fees?
No. This revenue should be included along with your other performance fees.
23. If an entity holds fee-based educational events at its venue and presents fee-based programs
offsite, is the revenue from the offsite programs excluded?
No. The fees generated by these offsite programs should be included in the entity’s gross and earned
revenues.
24. If an entity does not sell food or beverages directly to consumers, but receives a commission
from a concessions firm that is outsourced for this, would the commission funds received
constitute food and beverage sales?
Yes. A commission on food and beverage sales by a third party operating at a venue is considered
income from food and beverage sales.
25. Can music recordings produced via a record label in an entity’s spaces, on tour and online count
as merchandise sales?
Yes. Income derived from these sales should be considered proceeds from sales of merchandise.
26. For an entity that only operates some facilities and the facility owner remains responsible for
profits and losses (i.e., revenue and expenses are reported on operator tax return attributable
to owner), how should the operator handle reporting? Should the revenue from the operated-
only facilities be removed in this section since the owner will use those revenues on owner’s
SVOG application?
While it is possible that the same venue may be associated with multiple applications, such as where
a venue owner, promoter, and talent representative all reference the same venue for purposes of
documenting that they each individually meet the facility and event related eligibility requirements
of the SVOG program, no SVOG application should include revenues that are also included on another
SVOG application.
27. Where a venue, movie theatre, or museum owned by a private university does not have its own
EIN, should its application use the revenue figures for the university department which
operates the entity, or must the requested revenue figures be those of the entire university
system given it is the legal entity for purposes of the application?
With the exception of government-owned eligible entities, including those owned by public
universities, the SBA will look to the legal entity that is the holder of the EIN associated with the
application to determine whether that application meets the SVOG program criteria, including the
10% federal contribution to gross revenue restriction, the principal business activity requirement,
and all revenue loss thresholds.
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28. *Will a recipient’s grant amount be based on their earned or gross revenue?
The amount of funding an eligible entity receives under the SVOG program will be based on the
product of a formula applied to their 2019 earned revenue (minus the amount of any PPP loan
received after Dec. 27, 2020) or $10 million, whichever is less.
29. *Is an entity’s eligibility for the priority periods based on its gross revenue or earned revenues?
Eligibility for the first and second priority periods is based upon reductions in an entity’s gross
revenues between comparable dates in 2019 and 2020.
Subsidiaries & Affiliates
1. For entities with subsidiaries, does each entity need to meet the eligibility criteria
independently?
No. Subsidiaries only need to meet the eligibility criteria independently if they are applying for SVOG
awards on their own. If subsidiaries are included in a parent entity’s SVOG application, only the
parent entity needs to establish its eligibility. Additionally, per the Economic Aid Act, subsidiary
entities that qualify for an SVOG will not be treated as affiliates of their parent entity or one another.
2. How are shared expenses across affiliated organizations treated?
Assuming an entity with subsidiaries (parent) shares costs with its subsidiaries, the parent’s shared
costs (or allocated costs to subsidiaries) remain as such, and the parent should keep records to show
that all expenses claimed under the grant served grant purposes. If a subsidiary is eligible to apply for
and applies for its own grant, only the portion of the shared cost that the subsidiary pays can be paid
for by the SVOG should it be received.
3. Are there limits on the number of affiliates that can receive an SVOG or the total between them?
Yes, a maximum of five business entities related via affiliation (for example, one parent firm and four
subsidiaries) can receive an SVOG. In addition, an eligible museum, and all other museums it
operates as subsidiaries may receive no more than $10 million combined under the program.
4. If a parent company is ineligible for an SVOG, can one of its subsidiaries still be eligible?
In general, yes. The Economic Aid Act specifically allows up to five firms with a subsidiary/parent
relationship to apply for an SVOG providing they can meet the eligibility requirements in their own
right, and the fact that one of them is ineligible generally should not preclude the others eligibility.
However, a subsidiary would not be eligible where it is majority owned and controlled by a parent
entity that is either listed on the stock market or owns or operates eligible entities in more than 1
country and more than 10 states and has more than 500 employees. In either of those cases, the
Economic Aid Act mandates that a subsidiary entity is ineligible for an SVOG even if it meets all the
other requirements.
5. May a parent company include its subsidiaries in an SVOG application, or do separate
applications need to be submitted for a parent and each subsidiary?
Yes. While subsidiaries can apply for SVOGs on their own, they are not required to do so. A parent
company can submit an application that includes some or all its subsidiaries if it wishes to.
6. What does it mean for two or more entities to be affiliated?
Affiliation occurs where one firm has the power to control another firm, or a single person or entity
has the power to control both. Affiliation typically arises due to common ownership, management, or
through contractual or other legal arrangements. The SBA uses the principle of affiliation to help it
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determine if an entity is eligible for some government program or benefit reserved for small
businesses. Where firms are found to be affiliated with one another, the SBA will combine their
revenues and number of employees and compare those aggregated amounts to the relevant size
limit for the program or benefit one of the firms is seeking. In this way, the SBA ensures that a firm
which appears to be small but is actually controlled by a large corporation does not take a benefit
meant only for small firms. The rules regarding affiliation in the context of SBA’s financial assistance
programs may be found at 13 C.F.R. §121.301(f).
7. How will the SBA apply the principle of affiliation to the SVOG program?
In administering the SVOG program, the SBA will take into account the principle of affiliation in the
following contexts: (1) In applying those provisions of the Economic Aid Act that specifically reference
affiliation; and (2) In determining whether an applicant qualifies for the small employer set-aside.
Given the SVOG program’s statutory design and the fact that it is not strictly a small business
program, the SBA will not consider affiliation in any other context, including general eligibility. The
Economic Aid Act mentions affiliation in two ways. First, it says affiliated firms (including subsidiaries)
may apply for SVOGs on their own if they meet all the eligibility requirements. Second, it says that no
more than five affiliated firms may receive SVOGs. In applying these two provisions, the SBA will rely
upon the general principles of 13 C.F.R. § 121.301(f) to determine when firms are affiliated. Regarding
the small employer set-aside, it requires the SBA to reserve no less than $2 billion in SVOG program
funding for awards to eligible entities with no more than 50 full-time employees. The small employer
set-aside is the only definitive size limit in the Economic Aid Act and the SBA will administer it in the
same way it does other size limits. When calculating how many full-time employees an SVOG
applicant has for purposes of determining whether it qualifies for the small employer set-aside, the
SBA will look to the total number of full-time employees retained by the applicant and all of its
affiliated entities. If this combined number is not more than 50, the applicant will qualify for the small
employer set-aside.
8. No longer relevant / deleted per the American Rescue Plan Act being signed into law.
9. If a theater circuit has five theaters, each a separate legal entity, but filed with a consolidated
tax return, are they considered five entities or one entity?
Five entities. Consolidating tax returns does not strip subsidiary or affiliated entities of any separate
legal existence they may possess.
10. A motion picture theatre business is organized into two legal entities (the motion picture
theater management company and the motion picture theater operating company) and never
separately allocated revenues between the two because all income and expenses are
consolidated. The management company and operating company each plan to apply for
separate SVOGs. For purposes of determining the respective revenues of each separate affiliate,
may the business apply a reasonable method of dividing revenue between the two entities?
Yes. In allocating revenues and expenses to the separate entities the owner should consider the roles
and responsibilities of each entity and the effort and other resources each contributed to the
consolidated operations and ensure that any such division is reasonable and well documented.
11. How is "subsidiary business" being defined?
A subsidiary is an entity that is either wholly or majority-owned and controlled by another entity.
12. If a company has 10 subsidiaries or affiliates that are independent legal entities could all 10
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apply for an SVOG at once with the understanding that only five of them could receive grants?
No, no more than five affiliated eligible entities may have active SVOG applications pending before
the SBA at any one time to efficiently allocate resources and reduce the potential for erroneous SVOG
awards which would need to be cancelled and possibly recouped. Any applications received above
the five affiliated-entity limit will be rejected without being evaluated. Under this scenario, however,
where an affiliated eligible entity’s application is evaluated and declined, another affiliated eligible
entity could then apply.
13. On March 22, this was moved to Supplemental Phase section
14. Does the limit on a group of affiliated entities having no more than 5 active SVOG applications
pending before the SBA (or receiving more than 5 SVOGs) also apply to entities owned by state
or local governments?
Yes. No more than five eligible entities owned by the same state or local government may
simultaneously apply for or receive SVOGs.
15. Can two affiliated eligible entities both use the employer identification number of their parent
to apply for their own SVOG? For example, could a concert hall and a movie theatre owned by
the same parent entity each use that parent entity’s EIN to apply?
No. Only one SVOG application and award will be allowed per EIN. Additionally, where a parent
entity’s EIN is used, it is the parent entity that must meet the statutory definition of an eligible entity
rather than its subsidiaries or internal divisions.
16. When will the SBA consider two entities with common ownership to be affiliated for purposes of
the SVOG program?
Consistent with the size regulations for disaster financial assistance programs (see 13 C.F.R. §
121.301(f)) the SBA will only consider two firms to be affiliated for purposes of the SVOG program
where one firm owns more than 50% of the other or a single person or entity owns more than 50% of
both.
17. Can 2 or more firms affiliated due to their common ownership by another firm apply jointly?
While affiliates may apply for the SVOG program in their own name assuming they meet the eligibility
requirements or may be included in an application submitted by their ultimate parent entity, they
cannot team up together on an application unless one of the firms owns more than 50% of the other.
For example, if Company A owns 100% of Company B, which owns 100% of Company C, then
Company C could apply in its own name or be included in either A or B’s application. Conversely, if
Companies B and C are both 100% owned by Company A then they could each apply in their own
name or be included in A’s application, but B and C could not pair up together to submit an SVOG
application.
18. If an entity does not have DUNS numbers for affiliates that will be listed as part of its SVOG
application, but the affiliates do not qualify for a SVOG (and won’t be applying), does it need to
DUNS numbers for those affiliates?
No. If an entity does not currently have DUNS numbers for non SVOG eligible affiliates it is not
required to obtain such registrations to submit an SVOG application.
19. Does the limit on having no more than five pending applications or receiving no more than five
SVOG awards per group of affiliated entities apply to government-owned entities?
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No, the SBA will not limit tribal, state or local governments to having no more than five pending SVOG
applications or to receiving no more than five SVOGs. SBA’s affiliation principles do not apply to
governments.
Supplemental Phase
1. For seasonally-operated entities, will an alternative earned revenue loss comparison of Q1 2021
to Q1 2019 method be used for supplemental award eligibility?
Yes, where an entity operates seasonally rather than year-round, the SBA will permit the seasonally-
operated entity to compare its Q2 2021 earned revenues to its Q2 2019 earned revenues to
demonstrate whether it has experienced the 70% earned revenue loss required for supplemental
grants.
2. Can eligible entities include an application for a supplemental grant as part of the initial grant
request, or will they be required to submit a separate supplemental application later?
The SBA needs to finish the initial round of awards before proceeding to the supplemental phase and
the criteria and calculations for issuing supplemental awards are dependent on the outcome of initial
round. As such, supplemental grants will be awarded pursuant to a separate application process after
the initial phase.
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