The U.S. Small Business Administration (SBA) published Frequently Asked Questions (FAQs) on January 27, 2021 for the Shuttered Venue Operators Grant (SVOG) program. The FAQs cover eligibility, definitions and other aspects of the grant. Applications for the grant are not being accepted yet, but there are several steps organizations can take in the meantime to be ready to apply.
SVOG applicants must be registered with System for Award Management (SAM). Applicants cannot use an Individual Taxpayer Identification Number, Employer Identification Number or other means of identification. A prerequisite for the SAM registration is a Dun and Bradstreet number (DUNS). The DUNS should be obtained as soon as possible. Once an organization has a DUNS number, it should register with SAM immediately (SAM.gov), as the SAM registration may take up to two weeks once submitted.
To prepare for the application, organizations should gather all documentation providing the number of employees and monthly revenues to calculate the average number of qualifying employees over the previous 12 months. The employees are counted based on full-time employee calculation.
Organizations also should determine the extent of gross earned revenue loss experienced between 2019 and 2020. The SBA defined gross earned revenue as monies an organization receives from the sale of goods or services and does not include donations, sponsorships, governmental assistance or returns of investment. The SBA further details that gross earned revenue is the total of earned revenue from various sales of goods or services, such as admission tickets, merchandise, food and beverages, advertising sales and contracted presentation income. Rental income for event hosting should also be included in earned gross revenue.
The SBA states that the information above, as well as floor plans, contract copies and other evidence of eligibility will be needed to apply for the grant.
An important reminder on the eligibility requirement is that if an organization received a Paycheck Protection Program (PPP) loan on or after December 27, 2020, it is not eligible for SVOG.
Schneider Downs will keep monitoring the updates on SVOG and provide updates as they are received.
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.