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Shuttered Venue Operators Grant

Originally Posted 5.11.2021

Are you an independent music venue, promoters, talent agencies, museums, and/ or movie theaters that was forced to shutter during the global pandemic? Then you might be eligible for the Shutter Venue Operators Grant!

Shuttered Venue Operators Grant

This is a grant program offered by the Federal Government through the Small Business Administration as part of the December 27, 2020 Consolidated Appropriation Act and bolstered by the March 11, 2021 American Rescue Plan Act. Through this grant program, shuttered venues across the nation will have access in over $16 billion in grants to support the impacts that loss in revenue and operating activities the pandemic has imposed on these businesses.

Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

After some initial bugs in the application portal, the SBA officially relaunched the opening of the SVOG application on April 24, 2021.

Who is an Eligible Recipient?

  • Live venue operators or promoters;

  • Theatrical producers;

  • Live performing arts organization operators;

  • Museum operators;

  • Motion picture theater operators (including owners); or

  • Talent representatives

That have a defined performance and audience spaces.

Other requirements of note:

  • Must have been in operation as of February 29, 2020

  • Venue or promoter who received a PPP loan on or after December 27, 2020, will have the SVOG reduced by the PPP loan amount

What can funds be used on?

Funds may be used for specific expenses, which include:

  • Payroll costs

  • Rent payments

  • Utility payments

  • Scheduled mortgage payments (not including prepayment of principal)

  • Scheduled debt payments (not including prepayment of principal on any indebtedness incurred in the ordinary course of business prior to February 15, 2020)

  • Worker protection expenditures

  • Payments to independent contractors (not to exceed $100,000 in annual compensation for an individual employee of an independent contractor)

  • Other ordinary and necessary business expenses, including maintenance costs

  • Administrative costs (including fees and licensing)

  • State and local taxes and fees

  • Operating leases in effect as of February 15, 2020

  • Insurance payments

  • Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production. (May not be primary use of funds)

What can funds not be used on? 

  • Buy real estate

  • Make payments on loans originated after February 15, 2020

  • Make investments or loans

  • Make contributions or other payments to, or on behalf of, political parties, political committees, or candidates for election

  • Pay for any other use prohibited by the Administrator

Where do we go to apply for this loan?

The SVOG program is administered by the Small Business Administration.


Additional Random Questions Answered

How much can a business receive?

Grant amounts will reflect either of the following instances:

  • For an eligible entity in operation on January 1, 2019, grants will be for an amount equal to 45% of their 2019 gross earned revenue OR $10 million, whichever is less.

  • For an eligible entity that began operation after January 1, 2019, grants will be for the average monthly gross earned revenue for each full month you were in operation during 2019 multiplied by six (6) OR $10 million, whichever is less.

If the SVOG program open for all eligible businesses?

Those who have suffered the greatest economic loss will be the first applications processed. (1) For the first 14 days of grant awards, first priority will be given to entities that suffered a 90% or greater gross revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic;

(2) Second priority for the next 14 days of grant awards will be given to entities that suffered a 70% or greater gross revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic;

(3) Third priority beginning 28 days after first and second priority awards are made will be given to entities that suffered a 25% or greater gross revenue loss between April 2020 through December 2020 due to the COVID-19 pandemic;

(4) After all priority periods have passed, recipients of first, second and third priority round awards who suffered a 70% or greater revenue loss for the most recent calendar quarter (as of April 1, 2021 or later) will be offered supplemental funding if any funds remain

What can I do to prepare?

Utilize the SBA's SVOG application checklist to help you gather and prepare necessary materials needed for the SVOG application.

Is an entity that applied for and received a PPP loan eligible to apply for a SVOG?

Yes. However, under the law, entities will be ineligible for a PPP loan AFTER they receive an SVOG. and 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 3 | Page amount. (If the entity received both a First Draw and Second Draw PPP Loan after Dec. 27, 2020, the combined amount will be deducted from the SVOG.)

Is a seasonal employer eligible for the SVOG program?

Yes. However, entities that operate seasonally will be subject to alternative rules on establishing gross and earned revenue loss, qualifying for priority period funding, and documenting eligibility to accommodate for the seasonal nature of the business.

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