SBA reports first 50 grants for shutter site operators
Grants for closed site operators totaling $ 54.2 million were awarded to 50 recipients until noon Thursday, the US Small Business Administration (SBA) reported.
The awards are the first to be announced for the SVOG program, and they come more than five months after the program was created by law PL 116-260 on economic assistance to small businesses, nonprofits and sites. hard hit. This bill, which was signed in law in late December, allocated $ 15 billion to the SVOG program, which received an additional $ 1.25 billion after the American Rescue Plan Act, PL 117-2, became law March 11.
The grants reported by the SBA this week are only a small fraction of the funding requests the SVOG program has received. Site operators and other eligible entities submitted 13,783 applications, requesting a total of $ 11.4 billion in funding, according to the SBA Public Report on SVOG program. This appears to leave almost $ 5 billion available even though all submitted applications are approved.
The SVOG program offers eligible applicants grants equal to 45% of their gross earned income, up to a maximum of $ 10 million. Site operators and other eligible entities can still request an SVOG through the program application portal. The SBA accepts SVOG applications on a first-in, first-out basis and assigns applicants respective priority periods as it receives applications.
The 50 awards given out on Thursday were for entities that suffered a loss of revenue of 90% or more between April and December 2020 due to the COVID-19 pandemic. The first 14 days of SVOG scholarships are reserved for these entities, and the SBA has indicated that in addition to the 50 scholarships awarded, 3,471 applications are under review.
The following 14 days of grants (days 15 to 28) will include entities that suffered a loss of revenue of 70% or more between April and December 2020. After these periods, SVOG grants will include entities that suffered a loss of 25% or more. loss of revenue between a quarter of 2019 and the corresponding quarter of 2020.
Firms with 50 or fewer employees received 44 grants totaling $ 33.01 million. The SVOG program has at least $ 2 billion earmarked for eligible applicants with no more than 50 employees.
More than half of the grants (27) went to theater operators or promoters. Cinematographic film exhibitors received 12 grants, while performing arts organizations received nine. One grant went to a talent representation company and a theater production company. Museums and site promoters are also eligible.
A long drama
Site operators and other SVOG-eligible entities have been among the companies hardest hit by the COVID-19 pandemic and widespread restrictions on public gatherings. They then had to endure multi-act drama as the SBA struggled to get the program up and running.
Working with vendors to develop a new platform to facilitate the SVOG application and grant process, the SBA opened the application portal on April 8. The portal ran into problems almost immediately, with site owners and other eligible businesses stating on social media that they couldn’t upload supporting documents for their claims. The SBA then closed the gate for repair just hours after it reopened.
After nearly three weeks of repairs and testing, the SVOG application portal reopened April 26, and the first applications were successfully submitted to the program.
AICPA experts discuss the latest news on SVOG and other small business support programs at a virtual town hall that is held every two weeks. The webcasts, which offer CPE credits, are free for AICPA members and $ 39 for non-members. Go to AICPA Town Hall Series web page for more information and to register. Recordings of Town Hall events can be viewed free of charge at AICPA television.
the AICPA Paycheck Protection Program Resource Page houses resources and tools produced by the AICPA to help cope with the economic impact of the coronavirus.
AICPA members can learn more about SVOG on the web page “Understanding the Shuttered Venue Operators Grant Program. “
For more information and stories on the coronavirus and how CPAs can handle the challenges of the outbreak, visit JofA‘s coronavirus resource page or subscribe to our email alerts for the latest PPP news.
– Jeff drew ([email protected]) is a JofA senior editor.