The Small Business Administration issued some preliminary guidance on how a new federal program to provide help to hard-hit playhouses, movie theaters, museums and other venues will work.
The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act was part of the stimulus package passed by Congress in December, providing $15 billion in support for performance spaces, entertainment and cultural venues, theater operators, producers and others suffering from shutdowns imposed in response to the COVID-19 pandemic. While the Shuttered Venue Operator Grants program is not up and running quite yet, the SBA is responding in a
Entertainment venues and cultural institutions have been suffering for nearly a year since states and cities began imposing lockdowns and other restrictions as a public health measure to stem the spread of the novel coronavirus. While some museums have been able to reopen with a limited capacity, and entertainment venues and performers have resorted to alternatives such as Zoom performances, online videos and merchandise as ways to raise money, many theaters and institutions are finding that they’re earning only a fraction of the revenue they made before the pandemic. The funds in the Shuttered Venue Operator Grants could provide a desperately needed lifeline to these organizations once they’re available.
“Eligible entities may be live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives, per the Economic Aid Act. Additionally, entities of these types owned by state or local governments (for example, museums or historic homes) are eligible to apply if the governmentally-owned entity also acts solely as a venue operator, museum, etc. and not also include other types of entities,” said the SBA. “For example, a city parks and recreation department that operated a bandstand in a public square along with running various nature parks would not qualify as an eligible entity for an SVOG. Finally, each subsidiary business owned by an eligible entity that also meets the eligibility requirements on its own rights will qualify as an eligible entity.”
The document addresses a variety of questions, including the interplay of Paycheck Protection Program loans, whether restaurants that also provide entertainment qualify (generally not), and if museums qualify if they’re partially funded by the state (they can).
The business needs to have been in operation as of Feb. 29, 2020. However, the timing of when the funds will be available is still unclear, though the SBA is pledging to make the money available soon: “The SBA is working expeditiously to open SVOG applications and encourages you to stay up to date by frequently visiting
