SBA Announces “Save Our Stages” (SOS) Shuttered Venue Grant Program
Published January 13, 2021
Applications for this grant program have not yet opened. Reach out to your MCM Relationship Contact or email us at firstname.lastname@example.org and we will keep you updated when applications become available.
The U.S. Small Business Administration (SBA) has announced a $12 billion relief program designed to support qualifying venues that suffered losses due to the COVID-19 pandemic. The grant program is referred to as the “Shuttered Venue” Operators Grant Program or the “Save Our Stages” (SOS) Grant Program. Below, we will break down the details of the program and eligibility requirements.
Eligible persons or entities include live venue operators or promoters, theatrical producers, live performing arts organization operators, relevant museum operators, motion picture theatre operators or talent representatives. The SBA has laid out specific requirements to define these terms, please reach out to your MCM relationship contact or email us at email@example.com to learn more.
Entities may be not-for-profit, for-profit, or government owned, and can be a corporation, LLC, partnership, or sole proprietorship.
Note: For a museum to be eligible, it cannot be a for-profit entity.
- Fully operational on February 29, 2020,
- Had a loss in revenue (accrual basis) during any quarter of 2020 that was less than 75% of what it was for the same quarter in 2019, and
- Have reopened or plan to reopen.
What businesses are ineligible?
The SBA has stated that businesses will be considered ineligible to receive the grant if they meet any of the following:
- 10% of gross revenue from federal funding – if it received or is majority owned or controlled by another entity that received more than 10% of gross revenue from federal funding during 2019 (Robert T. Stafford Disaster Relief and Emergency Assistance Act funds excluded).
- Large operator – if it is majority owned or controlled by another entity, with two or more of the following qualities:
- Owns or operates locations in more than 10 states,
- Employs more than 500 FT employees as of February 29, 2020, and/or
- Owns or operates locations in more than one country.
- Public Issuer – if it is majority owned or controlled by another entity that is an issuer, securities of which are listed on a national securities exchange.
- Prurient sexual nature – if it presents live performances of a prurient sexual nature or derives more than de minimis gross revenue through the sale of products/services of a prurient sexual nature.
- Received a PPP loan after December 27, 2020.
How can funds be used?
Those who receive funding from a shuttered venue grant can use funds for many purposes including: payroll, rent, utilities, debt payments from prior to February 15, 2020, contractors, maintenance, state and local taxes, licensing costs, necessary insurance payments, capital expenditures for shoes and PPE/barriers/other COVID protection measures.
What if I am applying for a PPP loan?
Currently, the shuttered venue grant CAN NOT be combined with a Paycheck Protection Program (PPP) loan received after December 27, 2020. Businesses that received a PPP loan before that date can apply for the grant.
How large are these grants?
An applicant is capped at $10 million.
- Initial Grants –
- For a business in operation on January 1, 2019 – 45% of the gross earned revenue of the entity during 2019
- For a business that began operations after January 1, 2019 – 6x the average monthly gross earned revenue for each full month of 2019 that the business was in operation.
- Supplemental Grants – Businesses that receive an initial grant may receive a supplemental grant if, as of April 1, 2021, its revenue for the first quarter of 2021 is not more than 30% of the revenue for the first quarter of 2019. A supplemental grant will be equal to 50% of an initial grant (subject to the total $10 million cap on all SOS Grants received by the recipient).
- Supplemental grants cannot be administered until all applications for initial grants submitted within the program’s first 60 days have been processed
How will the grants be disbursed?
Up to 80% of the $12 billion in funds appropriated for this grant program will be allocated to initial grants made to applicants eligible to received grants in the following 28-day period:
- First priority – During the first 14 days, the SBA may only award grants to eligible applicants with revenue for the period from 4/1/2020 through 12/31/2020 that is not more than 10% of such applicant’s revenue during the same period of 2019 due to the COVID-19 pandemic.
- Second Priority Period – During the next 14 days of the program, the SBA may only award grants to eligible applicants with revenue for the period from 4/1/2020 through 12/31/2020 that is not more than 30% of such applicant’s revenue during the same period of 2019 due to the COVID-19 pandemic.
After the 28-day period, initial grants of any remaining funds can be made to other eligible applicants.
We’re here to help.
For more information or application assistance, please reach out to your MCM relationship contact or email us at firstname.lastname@example.org.