This article was updated May 10, 2022. Guidance on this topic is constantly evolving. Information is current as of the date of publication.
The Shuttered Venue Operators Grant (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, administered by the Small Business Administration (SBA) Office of Disaster Assistance.
The SVOG program no longer accepts new applications as of August 20, 2021.
If your organization applied before the deadline, gain insight into key questions and answers around SVOG compliance requirements below.
How Should a Recipient Account for a SVOG Under the SBA’s COVID-19 Relief Programs?
Under the terms of the SVOG program, recipients aren’t required to repay the funding as long as funds are:
- Used for eligible purposes
- Used by the dates specified for each respective program
Not-for-profit entities should account for government grants in accordance with the Contributions Received subsections of Financial Accounting Standards Board (FASB) Accounting Standards Codification® (ASC) 958-605, Not-for-Profit Entities—Revenue Recognition.
What’s the Maximum Amount of a SVOG?
For eligible entities in operation as of January 1, 2019, the SVOG initial funding amount is equal to 45% of the gross earned revenue during 2019. The supplemental SVOG amount may be up to 50% of the initial SVOG amount.
The maximum total amount that an eligible organization may receive from the SVOG program is $10 million.
How Long Will SVOG Recipients Have to Use Their Grant Funds?
Recipients who receive a SVOG in the initial phase will have one year from the date their awards are disbursed by the SBA to use those grant funds.
If an eligible entity receives a supplemental SVOG, they will have 18 months from the date the initial award was disbursed by the SBA to expend the combined initial and supplemental grant funds.
At the end of the applicable deadline, SVOG grantees must return all unexpended SVOG funds to the SBA.
How Are SVOG Funds Allowed to be Spent?
Funds may be used for the following expenses:
- Payroll costs
- Rent and utility payments
- Scheduled mortgage and other debt payments—not including prepayment of principal on any indebtedness incurred in the ordinary course of business prior to February 15, 2020
- Worker protection expenditures and insurance payments
- Payments to independent contractors that don’t exceed $100,000 in annual compensation for an individual employee of an independent contractor
- Other ordinary and necessary business expenses, including maintenance costs
- Administrative costs, including fees and licensing
- State and local taxes and fees
- Operating leases in effect as of February 15, 2020
- Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production—although these can’t be the primary use of funds
Grant funds may not be used to do the following:
SVOG funds also can’t be used to cover costs funded through other federal grants—in other words, no double dipping.