Shuttered Venue Operators Hanging On Delayed $15 Billion SBA Grants

A $15 billion Small Business Administration (SBA) grant program for companies in the business of live events has still not launched, The Wall Street Journal reported on Tuesday (Feb. 16). 

Venues for live events haven’t found a way to operate at a reduced capacity due to waning demand as people remained at home due to the COVID-19 pandemic. 

“The pandemic has been absolutely brutal on these arts and entertainment establishments, and it’s because they are uniquely dependent on packing people densely into concert halls, venues and indoor establishments,” Gusto economist Luke Pardue told the WSJ.

President Joe Biden’s SBA pick Isabel Guzman said she will prioritize the Shuttered Venue Operators Grant program if she is confirmed. 

A spokesperson for the SBA told the WSJ that the agency is still developing the new program and establishing safeguards.

The grant program will be available to theaters, museums, and other organizations in the business of the arts. Applicants can apply for grants of up to 45 percent of their 2019 gross earned revenue for a maximum of $10 million. Arts organizations that launched after 2019 will use monthly gross revenue calculations.

The initial grant program is open to qualified businesses that have experienced a 90 percent decrease in revenue from April to December 2020 due to the coronavirus, the article indicated. Operators with a revenue decline of 70 percent can apply for grants in two subsequent rounds.

Data from the U.S. Department of Labor (DOL) indicates that 800,000 jobs disappeared in the arts, entertainment and recreation industries when compared to February 2020. Overall, the country lost close to 10 million jobs in the past year.

Sports and concert venues said in November that they cannot safely stage big events with massive crowds. Varying state and local health mandates have contributed to the lack of socially-distanced live events. Further, individual comfort levels come into play.

It’s anticipated that once the grant program is available, there will be a stampede to apply. The fund was launched at the end of last year as part of a $900 billion relief package.