Within the past couple of days, the SBA made a couple of significant announcements related to two programs that they oversee. The rollout of the Shuttered Venue Operators (SVO) Grant and an expansion of the EIDL program are noteworthy announcements that will have a positive impact on many businesses in Kentuckiana and around the country.

There are several items of note related to the SVO Grant. First, there is a portal here where eligible entities can apply for the Grant, which is scheduled to begin accepting applications on April 8. Currently there’s a sign-up option on the site for those who would like to be added to a list to be contacted when the program opens. On March 30, from 2:30 – 4:00 PM, the SBA will host a national informational webinar to highlight the application process for potential eligible entities. Click here to register if that would be beneficial to you.

Note that there are several categories of eligible entities, including live venue operators or promoters, theatrical producers, live performing arts organization operators, and other specified entities. The SBA lists these categories, along with a broad swath of allowable uses for the funds and much more on their website here.

When the SVO Grant program was passed with the CAA in December 2020, Grant recipients were ineligible to benefit from both this program and the revamped Paycheck Protection Program. With the recently passed American Rescue Plan Act, the SVO guidelines were amended to permit access to both, with two important stipulations. The first stipulation states that once you receive an SVO grant, you will no longer be eligible for a new PPP loan (first or second draw). If you’ve already applied for a post-December 27 PPP loan but have not yet received a loan number for it, you should wait until the loan has been approved and you have received a loan number before applying for the SVO Grant. This has become important now that the PPP loan application window has been extended through May 31, as there is now the opportunity for PPP loans to be granted after the start of the SVO Grant window on April 8.

Further, a venue or promoter who received a PPP loan after December 27, 2020 will have the SVO Grant reduced by the amount of the PPP loan that they received. This reduction does not take into consideration a PPP loan from earlier in 2020, before December 27. Your business also must have been in operation as of February 29, 2020 to be eligible. Click here for a regularly updated list of FAQs and here for a preliminary application checklist to assist in gathering documents and other information that you might need.

Although the EIDL program has been around since the beginning of the pandemic, the length and severity of the situation has caused many business owners to call on the SBA to expand the availability of these favorable-term loans. As a response, the SBA just announced that the maximum loan size for new EIDLs starting April 6 will be $500,000. This is a marked increase from the previous $150,000 maximum that has been in place. Additionally, those who already received a loan will receive an email from the SBA with instructions on how to increase their loan size. Be on the lookout for that in the coming weeks!

This information is current as of March 26, 2021. We will be on the lookout for any other changes to these programs and let you know as soon as possible if there are any revisions or updates.