US Small Business Administration grant program closer to opening, owners can prepare to apply

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The Shuttered Venue Operators Grant is a $ 15 billion program that aims to help operators affected by the coronavirus pandemic. At least $ 2 billion is earmarked for small theater operators with fewer than 50 employees. Grant amounts will vary depending on when a business first started operations, but operators will likely receive up to 45% of their gross revenue before the pandemic, or $ 10 million, whichever is less. The program is still being finalized, including the application date, which will likely be in early April. Operators should check for more information.

“We are updating this page frequently as more details are finalized and clarified, including when we will begin accepting applications, as we are not yet doing so,” said Barb Carson, Deputy Associate Administrator. from the SBA’s Office of Disaster Administration, in an online presentation on Tuesday, March 30.

Under this program, live entertainment venues, cinemas, theater producers, museums and other operators can apply for a grant. To prepare the application, these companies must create a Account. The Rewards Management System is a federal government website and registration is free.

Business owners need to gather their financial information for the app. Businesses operating before January 1, 2019 will receive 45% of gross earned income. Operators who started after this date should calculate the average monthly gross revenue for each month they were in business in 2019 and then multiply that number by six.

Businesses that have applied for an SBA EIDL loan are eligible, as are those that have taken out a PPP first draw loan before December 27, 2020. Those who have taken out a PPP loan after this date will see the loan amount reduced by the grant.

Grant funds can be spent in a number of ways, including rent, payroll, utilities, insurance, local and state taxes and fees, and mortgage payments. Generally, the grant cannot be used to repay the principal of mortgages and other debts incurred before February 15, 2020.

Questions about the SVOG program can be emailed to [email protected].

SBA officials have not released definitive data for the Restaurant Revitalization Fund, a $ 28 billion subsidy program for bars and restaurants that have lost revenue due to the pandemic. Under this program, food and beverage establishments could receive up to $ 5 million per location, with a maximum of $ 10 million for multiple locations.

Nonetheless, these businesses can prepare themselves by determining the amount they can receive, which is done by subtracting their 2020 income from 2019. In addition, these establishments must set up a account, as well as getting a DUNS number, a nine-digit number used to identify businesses.

The application period for PPP loans has been extended until the end of May, but Eric Giltner, senior manager of the SBA’s Grand Forks office, is warning those applying for second-draw loans to ensure losses they suffered are due to the pandemic. Borrowers must show a 25% reduction in revenue between comparable quarters in 2019 and 2020. Non-pandemic losses cannot be covered by a PPP loan, Giltner said.

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