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The U.S. Small Small business Administration (SBA) has awarded more than $7.5 billion in Shuttered Location Operator Grants (SVOGs) to about 10,000 live amusement venues, small enterprises, and not-for-income, the agency announced Tuesday.
The $16.25 billion SVOG system delivers suitable candidates with grants equal to 45% of their gross acquired revenue, up to a utmost of $10 million. Practically 15,500 SVOG apps, searching for a complete of $12 billion in funding, have been submitted by stay location operators, promoters, arts corporations, expertise reps, motion image theater operators, museums, and theatrical producers, according to SBA reporting.
The SBA has rendered a conclusion on 95% of the SVOG applications it has gained, with 732 apps less than critique and 105 nevertheless to start evaluation as of July 26. Far more than 2,700 programs have been declined.
Approximately two-thirds of the awards have absent to venues with less than 10 staff members, the SBA explained.
Revenue nonetheless readily available
With requests for only $12 billion of the $16.25 billion in SVOG funding submitted, the SBA is supplying alternatives for applicants to enchantment grant denials, request award reconsiderations, and seek out supplemental funding. The time period to enchantment rejected applications will run from Aug. 2–16, although entities that gained much less funding than they predicted can utilize for reconsideration of their grant amount of money Aug. 4–18.
If resources continue to be right after these two-week periods, the SBA will open the software to supplemental SVOGs for 50% of the primary award amount for grantees, with the full SVOG award (preliminary and supplemental) remaining capped at $10 million.
The SBA delivered original facts about the award reconsideration and charm systems in updates printed July 22 in the SVOG Frequently Asked Issues file.
SVOG plot twists
The SVOG has found a great deal of drama considering that it was created by the Economic Aid to Hard-Strike Modest Enterprises, Nonprofits, and Venues Act, P.L. 116-260. That bill, which was signed into law in late December, appropriated $15 billion to the SVOG, which been given yet another $1.25 billion immediately after the American Rescue Program Act, P.L. 117-2, turned law March 11.
Working with sellers to establish a new system to facilitate the SVOG application and grant procedure, the SBA did not open up the software portal right up until April 8. The company then experienced to shut the portal down for repairs soon after only a several hours owing to venue house owners and other eligible enterprises being unable to upload supporting documents for their programs.
Right after virtually a few months of repairs and tests, the SVOG software portal reopened on April 26 and the very first apps ended up effectively submitted to the software.
Grants had been gradual to be created, due in section to the way the method was structured. Whilst grants are awarded on a 1st-occur, very first-served basis, Congress structured the SVOG to prioritize the most difficult-strike venues.
The initial 14 days of SVOG awards were being reserved for people entities that endured a 90% or increased revenue reduction in between April and December 2020 thanks to the COVID-19 pandemic. Much more than 3,200 grants had been produced to candidates in this team by way of July 26.
The next 14 times of awards (times 15–28) expanded eligibility to entities that suffered a 70% or increased profits loss among April and December 2020. The SBA made 2,125 grants to applicants in that team.
Following these periods, SVOG award eligibility was expanded to entities that endured a 25% or better income decline amongst a person quarter of 2019 and the corresponding quarter of 2020. Far more than 4,500 awards went to this group.
The SBA noted June 4 that it had awarded 50 SVOGs totaling $54.2 million. As of June 10, the SBA experienced awarded just above 100 SVOGs.
In its news launch Tuesday, the SBA explained the tempo of SVOG grant-earning increased just after the agency designed adjustments to its course of action primarily based on prosperous elements of the Paycheck Safety Application and Restaurant Revitalization Fund. The SBA did not depth what changes were being designed to the SVOG course of action.
AICPA professionals focus on the most up-to-date on the SVOG and other compact enterprise support plans during a virtual town hall held each and every other week. The webcasts, which supply CPE credit rating, are free to AICPA customers and $39 for nonmembers. Go to the AICPA City Corridor Series webpage for far more information and to register. Recordings of Town Corridor situations are readily available to view for free of charge on AICPA Tv.
The AICPA’s Paycheck Security Method Methods webpage houses assets and tools generated by the AICPA to assist handle the economic effects of the coronavirus.
AICPA members can understand much more about the SVOG on the webpage “Knowledge the Shuttered Venue Operators Grant Method.”
For extra news and reporting on the coronavirus and how CPAs can take care of issues related to the outbreak, go to the JofA’s coronavirus sources webpage or subscribe to our e mail alerts for breaking PPP news.
— Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.