On Thursday, January 14, 2020, the U.S. Small Business Administration (SBA’s Shuttered Venue Operators) has hosted a webinar that has presented an overview of Shuttered Venue Operators Grant program covered. In the Economic Aid in the context of Hard-Hit Small Businesses, Nonprofits, and Venues Act. This program was intended to give eligible organizations an opportunity to get up to a $10 million grant to combat the devastating effect of the COVID-19 pandemic.
The webinar was conducted to provide in-depth information about the grants, who can apply. How organizations can prepare themselves, and additional details. Since the entire nation is experiencing an unexpected economic disruption due to the COVID-19 pandemic, the government introduced several relief packages for small businesses to help overcome their challenges and move ahead to the path of success.
By adhering to the new Emergency Coronavirus Relief Act of 2020 signed into law on December 27, 2020, the U.S. Small Business Administration has announced to disburse $15 billion in grants to shuttered venues. Grants of up to $10 million were announced for venues, museums, theaters, and zoos that have faced a 25% reduction in revenue, alongside the option for a supplemental grant equal to 50% of the initial grant. The $2 billion was kept aside for venues that have less than 50 full-time employees.
Numerous live venue operators, theatrical producers, museum operators, live performing arts organization operators, and talent representatives have attended the webinar. There are certain eligibility requirements set for the event, which are as follows:
- Must have 25% reduction in revenue due to COVID-19 outbreak
- Must have not taken a PPP loan
- In the first 14 days of the program, entities with 90% or more revenue loss will be awarded
- In the next 14 days following the first round, entities with 70% or more revenue loss will be awarded
- After these two rounds, grants will be given to other eligible entities
Eligible entities can further use these funds to meet specific expenses such as payroll, utilities, rent, and personal protective equipment (PPE).
Size of Grants Amount
In simple words, the Shuttered Venue Operator Grant was announced for eligible businesses. There are specific grant amount sizes established for businesses which may vary under the following conditions:
- For a business in operation on January 01, 2019, money equal to 45% of the gross earned revenue in 2019
- A business that has started operations after January 01, 2019, will receive an amount equal to the average monthly gross revenue for each full month.
- For a business in operation during 2019, the amount will be multiplied by 6, or
The Usage of Grant Funds
The funds received from grants are said to be the costs incurred between March 1, 2020, and December 31, 2021. However, for any supplemental grants announced, the period will be extended till June 30, 2022. Any grants that are not put to use one year after being received must be returned. Businesses can use those grants to cover the costs and items allowed for PPP loan borrowers and in the December relief bill.
Shuttered Venue Operators Grants – Supporting Venue Operators that Have Seen Significant Drop in Revenue
A few industries such as the performing/visual arts sector have been adversely affected by COVID-19. As a part of the pandemic relief bill recently passed by the government and signed into law on 27 December 2020. The U.S. government has announced $15 billion for live venue operators, museum operators, motion picture theatre producers, live performing arts organizations, and other talent representatives.
The recently announced grants for Shuttered Venue Operators program will work as a lifeblood for several communities. After allocating the priority funds, the general program will start to provide support for businesses that have faced at least a 25% decline in revenue. There has been a lot of determination that’s been put together to make sure that everyone will receive a fair chance to fight and overcome the economic crisis.
It can help protect vulnerable venues to operate smoothly and achieve their dream of complete business ownership. The SBA’s Shuttered Venue Operators provides small business owners and entrepreneurs with the relevant resources and support. That they truly deserve to start, grow, and contribute to the economic growth while recovering from the unprecedented disaster.
Nelia Ladlad and her team have stepped into the challenge of monitoring this process and preparing an application process to make the process as easy to understand and smooth as possible for operators under the program.