The Plans for supplemental funding is underway for the. On Friday (Aug. 27), the Small Business Administration began sending out invitations for entities to apply for additional federal funding from the $16 billion allocated for music venues, promoters, talent agencies and more.
These supplemental grants will be available for anyone who received an initial grant and are able to show a 70% loss when comparing 2021’s first-quarter revenues to the same in 2019. Supplemental award applicants can choose to apply for any amount up to 50% of their original grant amount, with a $10 million cap of the initial and supplemental awards combined.
“The SBA has awarded approximately $9 billion in crucial relief to approximately 11,500 performing arts venues and other related businesses so they can continue to anchor our neighborhoods and define our communities. We know many of these businesses still need assistance to fully recover from the unanticipated expenses and debt caused by the pandemic,” SBA Shuttered Venue Operators Grant program director Matthew Stevens said in a release. “These supplemental grants will go to the hardest-hit Shuttered Venue Operators Grant awardees to ensure they can get back on their feet and get back to the business of driving our nation’s economy.”
The supplemental awards also allow SVOG recipients to extend the time to use their grant funds for expenses accrued through June 30, 2022 and lengthen their budget period to 18 months from the initial grant’s disbursement date.
If sufficient funding is not available for all eligible entities to receive a supplemental award, priority will be given to applicants who have illustrated the greatest revenue loss in the first quarter of 2021 compared to the first quarter in 2019. With $9 billion of the $16.2 billion for the grants awarded, roughly $7 billion remains for supplemental grants. If applicants are only allowed to receive 50% of their initial award, then as much as $2.5 billion could remain after supplemental grants are completed.
Applicants should check their program portal and follow instructions to accept or decline the supplemental grant. The SBA will be reviewing entities’ first quarter revenue for 2021 to decide on who receives funding. The SBA says those invited to apply for supplemental grants can expect awards to begin rolling out within two weeks.
Since the Shuttered Venue Operators Grants program was signed into law in December, independent venues, movie theaters and more live event businesses have struggled to bring in substantial revenue for the majority of 2021. Of the more than 17,600 applications submitted for the SVOG, just over 4,100 were declined. About 13% or just over 1,300 applications are still under review by the SBA.
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