New loans and grants options are coming, are you ready?
Shuttered Venue Operator Grant (SVOG) Updated 3/10/2021
What is it? The Shuttered Venue Operator Grant was approved by Congress and is open to live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives. The best part? It’s a grant, not a loan. See more detailed requirements here (updated March 1, 2021).
Application Open Date: Not yet available, but likely by early March.
How much money is available: $15 billion, which will go quickly. The application will come in waves, starting with venues that have lost 90% of their 2020 income, followed by those with a 70% loss. It’s very time sensitive as each group will have 14 days to apply.
The most important restriction: You cannot have applied for the second round of the PPP (even if you turned it down) - if you have, you are not eligible. As of March 4, 20201 an amendment has been proposed that allows venues to apply for both SVOG and PPP. "Any money venues receive from PPP2 will be deducted from any money they are granted through the SVOG. For example, if a venue is eligible for $100,000 SVOG and they have taken $25,000 in PPP2 funds, their SVOG cannot exceed $75,000." Read the article here.
There is a chance to secure more money under the SVOG than PPP. Some orgs may qualify for the SVOG in an amount equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million.
What information do I need to gather to prep for my application?
If you or your organization does not already have a Dunn and Bradstreet DUNS Number, get one.
Use your DUNS number to register in the federal government’s System for Award Management (SAM). You can’t simply use a Taxpayer or Employer ID Number to apply for an SVO grant. (Note: It could take up to two weeks to finalize a SAM registration, so start now.)
Gather documents that demonstrate your number of employees and monthly revenues so you can calculate the average number of qualifying employees you had over the prior 12 months.
Determine your gross earned revenue losses. It’s possible the SBA is going to use the Gross Earned Revenue definition to determine Priority Eligibility, but it’s not confirmed yet.
Determine the extent of gross earned revenue loss you experienced between 2019 and 2020 on a quarterly basis.
Make PDFs of additional information such as floor plans, contract copies and other evidence that will be needed to apply for an SVO grant.
Sign up for a regional mailing list and webinar in your area and develop a direct relationship.
Ask the SBA specific questions about SVOG eligibility by e-mailing SVOGrant@sba.gov.
Payroll Protection Program Loan, Second Draw
Many banks have put forgiveness on hold until March. As you know, forgiveness depends completely on the bank the organization worked with.
Application opened: Second Draw PPP Loans on January 13, 2021 and applications close on March 31, 2021.
How much money is available: At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low or moderate income neighborhoods.
Where do I apply for PPP loans? Start with the bank you currently bank with, all major banks are participating in the PPP loan process.
I already received PPP for the 1st round, is my organization still applicable?
Possibly. The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
How can I use it? With PPP, you can use the money to fund payroll costs, benefits included. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
You may qualify if you have less than 300 employees and have lost 25% of your revenue in 2020.
UPDATES AS OF MARCH 5, 2021
New forms for PPP forgiveness for round 1 are being issued for a streamlined process today, March 5th.
Applications for PPP round 2 are restricted to specific groups by the Biden administration until March 9th where they will over up to all organizations.