The Small Business Administration is funding the Shuttered Venue Operators Grant (SVOG) designed to provide assistance to entertainment and restaurant entities affected by the COVID-19 pandemic. Eligible entities include: live venue operators or promoters; theatrical producers; live performing arts organization operators; museum operators; motion picture theater operators; and talent representatives. There are specific qualifications to the entity type, and floor plans will be required to document items such as: the defined areas for the performances and audiences; projection booths; and lecture hall or auditorium with fixed seating for museums.
The amount of the grant will be equal to 45% of their gross earned revenue or $10 million (if in operation on January 1, 2019) or the average monthly gross earned revenue for each full month the entity was in operation during 2019 multiplied by six, not to exceed $10 million (if operations began after January 1, 2019). First priority will be given to businesses that suffered a 90% or greater gross revenue loss between April and December 2020 due to the COVID-19 pandemic. The second priority is for entities that suffered a 70% or greater gross revenue loss.
The funds may be used for business expenses that are similar to the requirements for the PPP loans.
Applicants may apply online at the Small Business Administration website.
Time is of the essence, as the program is already open. We encourage all of our clients to review their records and consider whether they may be eligible. Please contact your Tronconi Segarra & Associates advisor if you would like assistance with the application process or upon certification of use of funds.
For more information, contact Michele Loretto, CPA, Manager/Small Business Department at mloretto@tsacpa.com or 716.633.1373.
