Live Event Venues Can Apply for Relief
by David Klemt
Live event venue and movie theater operators can once again apply for relief grants via a Small Business Administration portal today.
This is big and welcome news for businesses that are among the hardest-hit due to the pandemic. However, the portal has yet to open at the time of publication.
It remains to be seen if the issues plaguing the SBA’s portal are no more. It also casts some doubt on a glitch-free process for Restaurant Revitalization Fund applicants.
SVO Grant Portal Problems
Today’s reopening of the Shuttered Venue Operators Grant portal is nearly three weeks in the making. A message on the homepage states that the portal has undergone “rigorous testing” to prevent further issues.
On April 8, the day the website opened for applications, it was shut down due to a “technical glitch.” Applicants are now 18 days behind in terms of applying for and receiving relief.
Unfortunately, the delay is more bad news for live event and movie theater operators. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act became law on December 27, 2020. That means more than 120 days will have passed just to open the application process today.
SVO Grant Details
The Shuttered Venue Operators Grant program contains more than $16 billion. There is a $10-million-dollar cap on single grants.
Importantly, eligible entities in operation on January 1, 2019, will receive grants equal to 45 percent of their 2019 gross earned revenue or $10 million. For eligible entities that began operation after January 1, 2019, grant amounts will be for the average monthly gross earned revenue for each full month of operation during 2019 multiplied by six or $10 million.
Eligible applicants include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Museum operators
- Motion picture theater operators, including owners
- Talent representatives
Notable requirements include the following:
- An eligible entity must have been in operation as of February 29, 2020; and
- entities that received PPP loans on or after December 27, 2020, will have the SVO grant reduced by the PPP loan amount.
Be Ready
If you’re an operator applying for an SVO grant, be sure you’re ready to apply today.
There is a checklist for applicants on the SBA website. Click here to access and review it. There are several forms operators will need to fill out and include in their application, such as SBA Form 1623 and SBA Form 1711.
Necessary financial documents include 2019 tax returns for businesses in operation in 2019, 2020 tax returns for businesses that have filed 2020 taxes, and 2018 tax returns for non-profit applicants that have yet to end their 2020 fiscal year. Businesses that declared Chapter 11 or Chapter 13 bankruptcy must include pertinent documents.
Additionally, there are also business-specific documents required for live venue operators or promoters; theatrical producers; live performing arts organization operators; movie theater operators; and museum operators.
Image: israel palacio on Unsplash