The 501 S(c)ene

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Shuttered venue operators grant program update

Back in January we wrote a blog about the COVID relief grant that will be made available for arts and cultural organizations called the Shuttered Venue Operators Grant (SVOG) program.  Since this blog was written, the SBA has issued some updates to this program including a date for when arts and cultural organizations can start applying.

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Originally it was reported that any arts and cultural organization receiving PPP funding after December 27, 2020 would not be eligible to receive an SVOG. The American Rescue Plan Act, which became law on March 11, 2021, removed this restriction. However, entities will no longer be eligible to receive PPP funding after receiving an SVOG. Additionally, any PPP funding received after December 27, 2020 would be deducted from the SVOG amount the entity would have been entitled to receive. For example, if a museum received PPP funding of $20,000 on February 1, 2021 and then based on lost revenue would have been awarded a SVOG of $100,000, the museum’s SVOG would be reduced to $80,000. Any PPP funding received prior to December 27, 2020 would not reduce an entity’s SVOG.

The SBA also announced that entities will be able to start applying for this grant on April 8. There will be a staggered approach to the process. The first 14 days of the program will be opened to those entities who have experienced revenue losses of 90% or greater between April and December 2020. The next 14 days will be opened to those who experienced revenue losses of 70% or greater and then after this 28-day period, the program will be opened up to all other entities who experienced smaller losses. In order to receive the grant, all applicants must be registered in the federal government’s system for award management at www.SAM.gov.

To read the most recent FAQ about the SVOG program, entities can visit www.sba.gov/document/support-shuttered-venue-operators-grants-faq. The SBA also created a new website in preparation for the start of this program which is www.svograntportal.sba.gov/s/. You can visit this site for more updates and info as it comes available.

Please contact your Henry + Horne tax professional with any questions. For more information and resources on COVID-19, see our coronavirus page.

Sharlynn Garza, CPA

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