The Shuttered Venues Operators grant program is aimed at supporting entertainment businesses affected by the COVID-19 pandemic and will distribute more than $16 billion to live venue operators, including eligible movie theaters, concert spaces, museums, and performing arts organizations.

The Shuttered Venue Operator grants have specific eligibility requirements that rule who is and isn’t eligible. Eligible entities include:

• Live venue operators or promoters
• Theatrical producers
• Live performing arts organization operators
• Relevant museum operators, zoos and aquariums who meet specific criteria
• Motion picture theater operators
• Talent representatives
• Each business entity owned by an eligible entity that also meets the eligibility requirements

In addition, businesses must have been in operation as of February 29, 2020 to receive a shuttered venue operator grant. For more detail on the eligibility requirements for the program, please see the full eligibility requirement document from the SBA.

The application portal for these grants opened on Thursday, April 8. To apply, eligible businesses should sign up for a System of Award Management (SAM) account with the federal government as soon as possible at SAM.gov. This requires that you first create a login.gov user account and use that same login information to sign up for your SAM account. When registering for your Sam account, you will need the following information:

• Dun & Bradstreet DUNS number – acquiring a DUNS number is free and typically takes one to two business days to process. Get a DUNS number free here.
• Tax Id number (TIN) and Taxpayer Name
• A CAGE or NCAGE number – if you don’t already have a CAGE/NCAGE number, one will be automatically assigned to you when your SAM.gov registration is finished
• A NAICS code – this code identifies what industry your business serves. You can look up NAICS codes here.
• Electronic Funds Transfer information

The SBA also has a preliminary application checklist that you can follow to make sure you are ready to apply when the application portal opens.

For additional information about the program, FAQs, video tutorials, and more, please visit the SBA’s Shuttered Venue Operators Grant homepage. The U.S. Chamber of Commerce also has a guide for what you need to know about these grants and hosted a Small Business Update on March 12 providing details on this program and the Restaurant Revitalization Fund, which was part of the recently passed American Rescue Plan Act.

NEW! The U.S. Small Business Administration will reopen the Shuttered Venues Grant application portal on April 26, at 11:00 a.m. Details. For Shuttered Venue Operators Grant application portal technical assistance such as a password reset, browser suggestions, or how to use multi-factor authentication with an app and the QR code, applicants can call 1-800-659-2955 or 1-800-877-8339 for the deaf and hard-of-hearing and follow the prompts for assistance. The call center opens today until 8 p.m. and will be open 24 hours a day through Monday evening at 8 p.m.

The new Restaurant Revitalization Fund (RRF), part of the recently passed American Rescue Plan Act, provides $28.6 billion in grants to restaurants and bars in need.

The RRF will offer $28.6 billion in grants to hard-hit restaurants and bars, with restaurants able to apply for grants based on lost revenue. Additionally, $5 billion of that total will be set aside expressly for businesses with 2019 gross receipts of less than $500,000.

Eligibility

Most American restaurants and bars that lost revenue in 2020 versus 2019 will be eligible to apply for RRF grants. The American Rescue Plan Act explicitly names the following types of establishments that should be eligible: “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.”

However, any restaurant or bar that is part of a publicly-traded company or owned by a state or local government is not eligible to apply. Also, owners that operate more than 20 restaurants are ineligible. Notably, if you are the owner of a franchise and you do not control more than 20 locations, you are likely eligible to apply.

When can I apply?

The Small Business Administration (SBA) will administer and disperse the RRF grants. To apply, businesses will need to either apply through SBA-recognized point-of-sale restaurant partners or directly with the SBA using an application portal.

The SBA announced that they will begin registrations on Friday, April 30 at 8 a.m. CDT and open applications on Monday, May 3 at 11 a.m. CDT. The online application will remain open to any eligible establishment until all funds are exhausted.

How can I apply?

In preparation, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:

• Registering for an account in advance at sba.gov starting Friday, April 30, 2021, at 8 a.m. CDT.
• Reviewing the official guidance, including program guide, frequently asked questions, and application sample.
• Preparing the required documentation.
• Working with a point-of-sale vendor or visiting sba.gov to submit an application when the application portal opens. [Note: If an applicant is working with a point-of-sale vendor, they do not need to register beforehand on the site.]
• Attending a live recorded virtual training webinar.
  • Tuesday, April 27 | 1:30 p.m. CDT | Register here
  • Wednesday, April 28 | 12 p.m. CDT | Register here
  • Wednesday, April 28 | 1:30 p.m. CDT | Register here

Applicants will need to collect and submit documentation to show how hard their business has been hit. Documentation will include tax information verification with the submission of a signed IRS Form 4506-T. Businesses may submit the following documents to prove gross receipts:

• Business tax returns (IRS Form 1120 or IRS 1120-S).
• IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F.
• For a partnership: partnership’s IRS Form 1065 (including K-1s).
• Bank statements.
• Externally or internally prepared financial statements such as income statements or profit and loss statements.
• Point-of-sale report(s), including IRS Form 1099-K.

Applicants that operate as a brewpub, tasting room, taproom, brewery, winery, distillery, bakery or inn have additional requirements, so be sure to thoroughly review what information is needed from the SBA before the portal goes live. All businesses who want to apply for RRF grants will not need to register with SAM.gov or acquire DUNS or CAGE numbers.

Those interested in obtaining RRF grants should keep a close eye on the SBA’s Restaurant Revitalization Fund website as new details emerge. They can also read over the SBA’s sample application to know all the paperwork and information you need to apply.

For the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. All eligible applicants are encouraged to submit applications as soon as the portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.

How much can I get from the grant program?

Generally speaking, restaurants can apply for grants that are equal to 2020 gross revenue minus 2019 gross revenue minus PPP loan amounts. For businesses in operation for all of 2019 and 2020, the maximum grant size will be $5 million for restaurants and $10 million for restaurant groups. Grant funds will not be taxed like income.

If a restaurant was not operating for all of 2019, the maximum grant value is the average monthly gross receipts in 2020 minus the average monthly gross receipts in 2019 minus PPP loan amounts. If a restaurant was not in operation for all of 2020, it could potentially receive a grant that totals the amount of “eligible expenses” between February 15, 2020, and March 11, 2021 minus 2020 gross receipts minus PPP loan amounts.

The minimum amount an RRF grant can be is $1,000.

What can the grant funds be used for?

The RRF grants are only able to be used on specific expenses. These include:

• Payroll costs.
• Payments of principal or interest on any mortgage obligation.
• Rent payments, including rent under a lease agreement.
• Utilities
• Maintenance, including new outdoor seating construction.
• Supplies, including PPE and cleaning materials.
• Food and beverage inventory.
• Covered supplier costs.
• Operational expenses.
• Paid sick leave.
• Any other expense SBA says is essential to maintain operations.

The “covered period” for what expenses can be paid by the grant must be incurred between February 15, 2020, to December. 31, 2021. Funds must be used for allowable expenses by March 11, 2023.

Official SBA site for Restaurant Revitalization Fund

U.S. Chamber article – What You Need to Know About Restaurant Revitalization Fund Grants

The Paycheck Protection Program (PPP) provides business owners with loans that can be forgiven if spent to account for employee compensation. To apply, please consult your financial institution to determine your eligibility and what is needed to complete the application. 

NEW! The U.S. Small Business Administration is launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less through participating lenders to apply for forgiveness directly through the SBA. The new forgiveness platform will begin accepting applications from borrowers on August 4^th, 2021.  Lenders are required to opt-in to this program through https://forgiveness.sba.gov/. In addition to the technology platform, the SBA is standing up a PPP customer service team to answer questions and directly assist borrowers with their forgiveness applications.  Borrowers that need assistance or have questions should call (877) 552-2692, Monday – Friday, 8 a.m. - 8 p.m. EST.

Here are some resources to better understand the rules surrounding the PPP loans. 

• The U.S. Small Business Administration and Treasury Department issued guidance regarding owner-employee compensation and rent-related costs.
• The U.S. Small Business Administration and Treasury Department issued guidance regarding health care costs and Economic Injury Disaster Loans (EIDL). 
• The U.S. Small Business Administration has a list of Frequently Asked Questions regarding the PPP, organized by different topic areas.  

The U.S. Treasury Department and IRS issued guidance clarifying the deductibility of expenses where a business received a PPP loan. This guidance provides new details for an earlier IRS decision that said normally tax-deductible items will no longer be deductible if they were paid for with PPP funds. Now, the agency has specifically prohibited any small business that it says has a reasonable expectation of PP loan forgiveness from deducting those expenses in its 2020 taxes -- even if it takes until 2021 or 2022 to reach actual forgiveness, or if the business has yet to even fill out a forgiveness application. 

SBA guidance on calculating the forgiveness of PPP loans

• The SBA, in consultation with the U.S Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application, which informs borrowers how to apply for forgiveness of PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The document helps small businesses seek forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans. To view the application and instructions, click here. 
• Paycheck Protection Program EZ Forgiveness Application 
• Paycheck Protection Program Full Forgiveness Application