- Sec. 324 Grants for Shuttered Venue Operators provides hope for the live entertainment industry
- $15 billion budgeted for grant programs for venues struggling from COVID-19 closures
The Consolidated Appropriations Act (“CAA”) includes provisions like the “Economic Aid to Hard-Hit Businesses, Nonprofits, and Venues Act” (“Act”) which has allocated $15 billion for “Grants for Shuttered Venue Operators” as per Section 324 of the Act.
“Save Our Stages” or “SOS,” as the provision is being called by the National Independent Venue Association, will be administered through the Small Business Association. It is available for all live venue operators including live and motion picture theatres, live performing arts organizations, talent representatives, and other such live event and entertainment venues.
Applications have not yet opened; the start date is waiting to be determined.
Your organization must demonstrate:
- At least 25% gross revenue decrease in any quarter of 2020 when compared to the same quarter in 2019
- The organization was open on/before February 29, 2020, and intends to resume operations
- Must meet certain qualifications as a venue operator
Three Tiers for Grants:
- Tier 1: those who have demonstrated a relative revenue loss of 90% or more between April and December 2020 (compared to that of 2019) will have first access to the grant upon opening the applications and for the following fourteen days
- Tier 2: those who have demonstrated a relative revenue loss of 70% or more between April and December 2020 (compared to that of 2019) will have access to the grant after Tier 1, fourteen days after applications have opened
- Tier 3: all others who have demonstrated any percent of relative revenue loss between quarters in 2019 and 2020 will have access to the grant 32 after applications have opened, once Tiers 1 & 2 have applied; $3 billion has been set aside for this tier
Use of Funds:
Similar to the PPP loan, organizations may use grant funds for a variety of permitted expenses incurred between March 1, 2020, and December 31, 2021; those who receive supplemental grants can use them for expenses incurred up until June 30, 2022.
Permitted expenses include various operating costs such as payroll, utilities, rent, tax fees, advertising, transportation, and other expenses vital to maintaining the business.
Questions? DSJCPA is ready to assist. Visit our website to meet our Coronavirus Response Team (CRT) and give us a call at 516-541-6549 for application and forgiveness assistance for loans and grants.
Associate, Creative Solutions
516-541-6549 | Email