Thanks to the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, as well as the amendment by the American Rescue Act, the Shuttered Venue Operators Grant begins accepting applications on April 8, 2021.

Through the program, there are $16 billion in grants available to shuttered venues, which will be distributed by the Small Business Association’s Office of Disaster Assistance.

Applicants who are eligible could potentially qualify for grants that are equal to 45% of their gross earned revenue. The maximum amount that a single grant will be awarded is $10 million. $2 billion of the total $16 billion have been set aside for applicants that have no more than 50 full-time employees.

Applying for the 2021 Shuttered Venue Operators Grant

In order to be eligible, applicants fall into one of the following categories:

•   Live venue operators

•   Live venue promoters

•   Live performing arts organization operators

•   Theatrical producers

•   Movie theater operators

•   Operators of zoos, museums, and aquariums

•   Talent representatives

•   Business entities owned by eligible entities

Eligible applicants must also have been in business by February 29, 2020. If the venue or promoter received a PPP loan on or after December 27, 2020, their grant amount will be reduced by the amount they already received.

Businesses that were already established by January 1, 2019 may obtain a grant for either $10 million or equal to 45% of their 2019 earned gross revenue, depending on which is less. Businesses that began after January 1, 2019 may be given a grant for either $10 million or the amount of their average monthly gross earned revenue for every month of 2019 that they operated, multiplied by six.

Applications for the Shuttered Venue Operators Grant begin in early April and businesses that have experienced the most significant economic loss will have theirs processed first.

First Priority Applications

In the first 14 days of grant applications, those that experienced a revenue loss of 90% or greater due to COVID-19 will be granted first priority.

Second Priority Applications

In the next 14 days, those that experienced a revenue loss of 70% or greater due to COVID-19 will be granted second priority.

Third Priority Applications

28 days after the first and second priority applications are accepted, the third priority round will begin accepting applications for businesses that experienced earned revenue loss of 25% or greater due to COVID-19.

Supplemental Applications

Once the priority application periods have passed, any business that received a grant in any of the rounds that experienced a revenue loss of 70% or greater during the most recent calendar quarter, can apply for supplemental funding.

How to Use the Shuttered Venue Operators Grant

If approved for the grant, funds may not be used to purchase real estate, to pay loans that originated after February 15, 2020, to make investments, or for other prohibited reasons. The grant funds can be used by businesses for certain expenses, including:

•   Payroll

•   Utilities

•   Rent

•   Mortgage

•   Insurance

•   Worker protection

•   Independent contractors

•   Taxes and other fees

•   Debt payments

The grant enables businesses who have suffered because of the COVID-19 pandemic relief and a chance to get back on their feet.

Read the SBA FAQs on Shuttered Venue Operators Grants

 

If you need help filling out the application for the Shuttered Venue Operations Grant, CONTACT US TODAY.