Yesterday, the SBA issued guidance on the relationship between the Shuttered Venue Operations Grant (SVOG) and the Paycheck Protection Program (PPP).
The SVOG program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues such as live performing arts organizations and other live venue operators or promotors, to be administered by SBA’s Office of Disaster Assistance.
The most recent amendment by the American Rescue Plan Act made it possible for venues that received first or second draw PPP loans after December 27, 2020, to receive funds from the SVOG program with the PPP loan funds subtracted from the amount of the SVOG. Any PPP funds received before December 27, 2020, do not need to be subtracted from the SVOG amount.
In addition, venues that do not receive a PPP Loan number before they are approved for the SVOG will be ineligible for the PPP funding.
To learn more visit the SBA Interim final rule here.