The company overseeing the now $7.2 billion Shuttered Venue Operators Grant (SVOG) program introduced Friday that it’s going to start sending out invites to its newly created supplemental grant program. SBA says that supplemental awards will begin going out in “two weeks.”
The primary iteration of the SVOG started on April 26, doled out $9 billion to 11,500 venues. It ceased accepting new functions on August 20.
The supplemental award is open solely to qualifying stay leisure small companies, nonprofits, and venues that already acquired help. The presumption is that many of those venues, which embrace music golf equipment, theaters and museums, nonetheless want help-and it isn’t a second too quickly, because the highly-contagious Delta variant poses an ongoing menace.
“These supplemental grants will go to the hardest-hit Shuttered Venue Operators Grant awardees to make sure they will get again on their ft and get again to the enterprise of driving our nation’s financial system,” Matthew Stevens, SBA’s SVOG program director, mentioned in an announcement.
The company specified that supplemental grants will be supplied at 50 p.c of the unique award quantity, capped at $10 million for the mixed preliminary and supplemental grants. Furthermore, solely establishments that acquired an preliminary grant that may present a 70 p.c first quarter loss in revenues in contrast with the identical quarter in 2019 are eligible.
The primary program stipulated that eligible candidates might apply for grants equal to 45 p.c of their gross earned income, as much as a most of $10 million. SBA defines “earned income” or “gross earned income” as cash acquired from the sale of products or companies slightly than, say, donations or sponsorship earnings.
As an added inducement, the company is extending the time interval establishments must spend their grants on eligible bills like payroll and hire. Companies and nonprofits receiving a SVOG could now spend down their grant proceeds on eligible bills by way of June 30, 2022; they will additionally get to elongate their price range timeframe to 18 months from the date of the preliminary grant’s disbursement. These establishments beforehand had 12 months after receiving a grant to pay or reimburse themselves for allowable prices incurred from March 1, 2020.
Ought to funding start to expire rapidly, SBA says it can prioritize candidates with the best income losses, retaining with the precedence durations that marked the primary model of this system. In that occasion, for 14 days after the SBA started making awards the company favored functions from entities with at the very least a 90 p.c income loss between April and December 2020. That adopted with one other 14-day precedence window for entities with income losses of 70 p.c or extra over the identical interval. The SVOG then opened up to people who suffered at the very least a 25 p.c drop in earned income.
Regardless of the excellent news for venues searching for a second dip, it is unclear what is going on with candidates which are at the moment interesting their SVOG selections or the quantities offered. In a previous announcement the SBA had mentioned it might rethink quantities and appeals on an invitation-only foundation. The company has offered no updates on this evaluate course of.
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