The Consolidated Appropriations Act, 2021 established the Shuttered Venue Operator Grant (SVOG) program. The Small Business Administration announced it expects to begin accepting applications in early April. The American Rescue Plan (ARP) amends a key element of the SVOG program and provides some relief for venue operators that have been waiting for funding.
Previously, an eligible entity could not receive both an SVOG and a Paycheck Protection Program (PPP) loan. With the looming March 31, 2021 deadline for PPP applications and the delays in getting the SVOG program up and running, many entities were left deciding whether they should apply for a PPP loan before the deadline, making them ineligible for an SVOG when it becomes available.
With the ARP, eligible entities can now apply for and receive both a PPP loan and an SVOG—with a caveat. Any PPP loan received will be deducted from an SVOG received by the same entity. Consider the example of an eligible entity that receives a First Draw PPP loan for $30,000 on March 23, 2021. When the SVOG program is up and running, the same eligible entity applies for an SVOG and calculates its potential grant amount to be $100,000. Rather than receiving the full $100,000 grant, the entity will now only receive $70,000.
Click the button below for further details on eligibility, grant amounts, and general terms of the SVOG program:
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