Skip to the content

Covid-19 Relief

Now that the COVID-19 Relief Bill is passed and signed, we will do our best to continue to update our membership. We will post new information here as it becomes available. We strongly urge you to contact your accountant or business manager to advise you of your options. The information provided herein is not intended to constitute legal or financial advice; instead, all information, content, and materials are for general informational purposes only.  The information may not constitute the most up-to-date legal, financial or other information and any links to other third-party websites are only for the convenience of the reader, user or browser. Please be vigilant in watching for application dates and consult with your accountant regarding application procedures.

 

Below you will find a brief overview of Shuttered Venue Operators Grant (SVO), Pandemic Unemployment Assistance (PUA), and the Payroll Protection Program (PPP). These are brief summaries only. Links to the full language from the bill are included in each section.

 

Locate your local SBA office by clicking HERE for more information.

Shuttered Venue Operators Grant (SVOG)

Click HERE to see language from the bill.
Visit https://www.sba.gov/ for additional information.

 

The SBA is now referring to Save Our Stages as the Shuttered Venue Operators Grant (SVOG).

 

October 20

Post-Application Guidance for SVOG Applicants

 

May 26

New SVOG Post-Application FAQs
 
FAQs for SVOG Awardees

 

May 11

The SVOG just issued Post-Application FAQs. Please read through this information for details regarding communications and awards.

 

April 23

The SVOG Application Portal will open Saturday, April 24th at 12:30 pm EDT. The updated Application User Guide, FAQs and Application Checklist are posted now.
 
SVOG Application User Guide
 
FAQ Regarding SVOG
 
SVOG Preliminary Application Checklist

 

April 20

Congressional Letter to the SBA Regarding SVOG

 

April 8

SVOG Portal Now Open

SVOG FAQs Effective 4.8.21

SVOG Applicant User Guide

 

April 7

New SVOG FAQs - Please see page 20, #27 for updated Talent Representative information.
SVOG-specific version of IRS Form 4506T
Video: Instructions on how to complete the SVOG-specific 4506T Form

 

March 31

SBA SVOG Application Informational Webinar (3.30.21)

The SBA webinar linked above indicated that applicants need to submit Form 4506-T, and suggested reading the OMB Uniform Guidance.

 

March 23

Updated SVOG FAQs

 

March 15

Updated SVOG Preliminary Application Checklist and FAQs
SVOG Preliminary Application Checklist (3.12.21)
SVOG FAQs (3.11.21)

 

February 28

Updated FAQs for the SVOG

 

February 19

The SBA just released a SAM tutorial.

 

February 12

FAQs for the SVOG updated and posted today.

 

January 28

The SBA just released the following FAQs pertaining to the SVO Grant. Please review this information as it addresses some important questions.

https://www.sba.gov/document/support-shuttered-venue-operators-grants-faq

 

January 22

The SBA recommends anyone that intends to apply for the SVO Grant get a Dun & Bradstreet number (DUNS), register at SAM.gov to receive your CAGE number, and register at grants.gov.

A PPP loan application will disqualify you for a SVO Grant application and vice versa. You need to make a decision to apply for one or the other. Please consult your accountant or business manager.

 

January 15

Link to January 14th SBA webinar
      Email questions to: SVOGrant@sba.gov
      For more information on this program, visit https://www.sba.gov/coronavirusrelief

 

January 12

SBA Shuttered Venue Operators Grant webinar to be held January 14th at 3pm ET.
      Register today (Please note that you must register in advance)
      More info at: www.SBA.gov/coronavirusrelief

 


What types of entities are eligible?

  • Live performance venue operators and promoters
  • Performing arts organizations
  • Theatrical producers
  • Talent representatives
  • Motion picture theatre operators
  • Non-profit museums


What are the broad eligibility requirements?

  • The business entity must have been “fully operational” on February 29, 2020.
  • The business entity must be able to demonstrate 25% gross earned revenue loss in any one calendar quarter of 2020 compared with than the same calendar quarter of 2019.
  • The business entity must be operating or intending to resume operations in the future.


What is the definition of a Talent Representative?

  • Not less than 70% of business operations is engaged in representing or managing artist and entertainers
  • Books or represents musicians, comedians, actors or similar performing artists primarily at live events in venues or at festivals
  • The performers represented are paid in an amount that is based on the number of tickets sold or a similar basis
  • Operates for profit, or a nonprofit organization or government-owned or a corporation, limited liability company, or partnership or operated as a sole proprietorship


What are disqualifying characteristics?

  • The business entity must NOT be majority-owned or controlled by a publicly traded corporation.
  • The business entity must NOT have received more than 10 percent of gross revenue from federal funding during 2019 (FEMA disaster assistance excluded).
  • The business entity must NOT have all three of the following characteristics:
    • Owning or operating venues, museums, motion picture theatres, or talent agencies in more than one country.
    • Owning or operating venues, museums, motion picture theatres, or talent agencies in more than ten states.
    • Employing more than 500 FTEs as of February 29, 2020 (30+hr./wk. = 1 FTE and 10-30 hrs./wk. =.5 FTE).
  • The business entity must NOT offer performances, services, or goods of an excessive sexual nature.


What is the amount of the SOS grant?

  • Initial Grant: The amount equal to 45% of 2019 gross earned revenue.
    • NOTE: Entities that began operations after January 1, 2019 will be eligible for the average monthly gross earned revenue for each full month during which the eligible person or entity was in operation during 2019 multiplied by 6.
  • Supplemental Grant: If funds remain after initial grants are distributed, a second grant equal to 50% of the initial grant amount may be awarded to entities still experiencing 70% earned revenue loss when comparing the first quarter of 2021 with the first quarter of 2019. The total amount of the initial and supplemental grants awarded may not exceed $10 million.


Who will be first to apply for SOS grants?

  • The Small Business Administration must write and implement regulations to administer the SOS program. After that is completed, it will begin accepting initial grant applications. Applications for supplemental grants will likely not be accepted until on or after April 1, 2021.
  • Days 1-14: The only applications accepted will be from entities whose total revenue for April 1, 2020 through Dec. 31, 2020 is 10% or less of their 2019 gross revenue for the same period.
  • Days 15-28: The only applications accepted will be from entities whose total revenue for April 1, 2020 through Dec. 31, 2020 is 30% or less of their 2019 gross revenue for the same period.
  • Day 29 and on: Any eligible entity may apply for an initial grant.
  • NOTE: No more than 80% of the total allocation may be awarded in the first 28 days.
  • NOTE: $2 billion (of the $15 billion program) is reserved for entities with fewer than 50 FTEs. This $2 billion will be set aside for 60 days or when funds are exhausted whichever threshold is met first


What are the allowable expenses?

  • Initial grants may be used for allowable expenses incurred between March 1, 2020 and December 31, 2021. If a supplemental grant is received, those funds may be used for allowable expenses incurred before June 30, 2022.
  • Allowable expenses include payroll costs as defined in 7(a)(36)(A) of the Business Act(15U.S.C. 636(a)3), rent payments, mortgage payments, utilities, debt payments for debt incurred in the ordinary course of business, PPE, independent contractor payments up to $100,000/year, maintenance expenses, administrative costs including fees and licensing costs, state and local taxes and fees, operating leases, insurance, and advertising, travel and capital expenditures for live performances.
  • Prohibited expenses include the purchase of real estate, loan payments on loans originated after February 15, 2020, investment or re-loan of funds, and political contributions.


Other Provisions

  • The entity must certify that the uncertainty of current economic conditions makes necessary the grant to support the entity’s ongoing operations.
  • An entity is ineligible for an SOS grant if you receive a PPP loan on or after the date of enactment of the SOS Act.
  • For the purposes of measuring revenue loss, CARES Act funding should not be counted toward gross revenue. SBA may use alternate methods to determine loss of seasonal employers.
  • Accrual accounting should be used to determine revenue.
  • Unlike PPP, this program does not apply PPP affiliation rules. However, no more than five affiliated entities may receive an SOS grant. Each affiliated entity – including any parent company – must meet all eligibility requirements.
  • Grant use will be reviewed by the SBA to determine fraud, noncompliance, or misspent funds. Grant recipients will need to retain 4 years of employment record and 3 years of other records following receipt of the grant.

PANDEMIC UNEMPLOYMENT ASSISTANCE (PUA)

Click HERE and start on page 1924.
(The info below is summarized from H.R. 133 Division By Division Summary and ExtendPUA.org).

 

March 16 – The passage of the American Rescue Plan accomplished the following:

  • All unemployment programs are extended for the next 5 ½ months with $300 FPUC included.
  • Partial Tax Relief for the Unemployed.
  • 100% COBRA subsidies from April through September.
  • More money devoted to rent relief and food assistance measures.
  • $1400.00 checks to millions of Americans.

*All info above from www.extendpua.org

 

Basics included in the Extension of Federal Pandemic Unemployment Compensation

  • 11 added weeks for PUA & PEUC claims and an extension of the expiration date. (There will be a “soft cut off” of unemployment benefits. On March 14th the PUA and PEUC programs will “end,” not allowing any new claims. BUT if you still have weeks left you can continue to claim until April 4th. On April 4th both programs will end regardless of any remaining weeks).
  • $300 FPUC added to all claims for 11 weeks (no retroactivity). The $300 will be added onto all PUA and UI claims from December 26, 2020 through March 14, 2021.
  • $100 added for people who would have been eligible for a decent sized PUA benefit, but only qualified for a small UI benefit instead (mixed income earners fix).
  • For mixed income earners: The bill provides a federally funded $100 per week additional benefit to individuals who have at least $5,000 a year in self-employment income (1099) but are disqualified from receiving Pandemic Unemployment Assistance because they are eligible for regular state unemployment benefits. This mixed-earner supplemental benefit would be added to the FPUC and would terminate along with it on March 14, 2021. This provision would be effective for future unemployment benefit payments after a state chooses to make an agreement with the Department of Labor.
  • $600 "stimulus” checks.
  • 15% increase for SNAP (food assistance).

PAYROLL PROTECTION PROGRAM (PPP)

Second Draw click HERE to review language in the relief bill (pg. 2042).
Click
HERE to view the SBA program guidelines once they become available.

 

A PPP loan application will disqualify you for a SVO Grant application and vice versa. You need to make a decision to apply for one or the other. Please consult your accountant or business manager.

 

The information below is taken from H.R. 133 Division-By-Division Summary and includes additional information not listed here.

 

  • $284 billion set aside for first and second forgivable PPP loans. Section 303 requires the SBA Administrator to establish regulations to carry out this title no later than 10 days after enactment of this title.

 

March 15 : Updated PPP FAQs

PPP FAQs (3.12.21)

 

February 4th: GT Webinar on PPP for NITO Members

Link to GT Webinar on PPP for NITO Members

 

February 3rd: Latest PPP FAQ Document

Please click here to see the SBA’s latest PPP FAQ document.

 

January 14th: The SBA is re-opening PPP to small lenders on Friday, Jan. 15th and all lenders on Jan. 19th.

Click here for more info from the SBA

 

January 11: PPP Second Draw Now Open

 PPP Borrower Application Form

 PPP Second Draw Borrower Application Form

Applications and Guidelines

 

January 7th: SBA Second Draw PPP Loan Guidelines

 PPP Second Draw Loans

 Economic Aid Act Amendments to PPP

 GT AlertPaycheck Protection Program - Expected Impact of Second Draw Loans

IFR: PPP Second Draw Loans

 

Paycheck Protection Program Second Draw Loans

  • Creates a second loan from the Paycheck Protection Program, called a “PPP second draw” loan for smaller and harder-hit businesses, with a maximum amount of $2 million.
  • In order to receive a Paycheck Protection Program loan under this section, eligible entities must:
    • Employ not more than 300 employees;
    • Have used or will use the full amount of their first PPP; and
    • Demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter. Provides applicable timelines for businesses that were not in operation in Q1, Q2, and Q3, and Q4 of 2019. Applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020.
  • Eligible entities must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives.
  • Ineligible entities include: entities listed in 13 C.F.R. 120.110 and subsequent regulations except for entities from that regulation which have otherwise been made eligible by statute or guidance, and except for nonprofits and religious organizations; entities involved in political and lobbying activities including engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public document, entities affiliated with entities in the People’s Republic of China; registrants under the Foreign Agents Registration Act; and entities that receive a grant under the Shuttered Venue Operator Grant program.

 

Loan Terms

In general, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year. No loan can be greater than $2 million.

  • New entities may receive loans of up to 2.5X the sum of average monthly payroll costs.
  • Businesses with multiple locations that are eligible entities under the initial PPP requirements may employ not more than 300 employees per physical location.
  • An eligible entity may only receive one PPP second draw loan.

 

Additional Eligible Expenses

Makes the following expenses allowable and forgivable uses for Paycheck Protection Program funds:

  • Covered operations expenditures. Payment for any software, cloud computing, and other human resources and accounting needs.
  • Covered property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
  • Covered supplier costs. Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
  • Covered worker protection expenditure. Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.
  • Allows loans made under PPP before, on, or after the enactment of this act to be eligible to utilize the expanded forgivable expenses except for borrowers who have already had their loans forgiven.

 

Selection of Covered Period for Forgiveness

Allows the borrower to elect a covered period ending at the point of the borrower’s choosing between 8 and 24 weeks after origination.