Information on Paycheck Protection Program Second Draw and Shuttered Venue Operators Grants


Posted by OMA on 01/17/2021
Updated information 4/19/2021
Shuttered Venue Operators Grant Update
The U.S. Small Business Administration aimed to reopen the SVOG portal by the end of the week of April 18, 2021, which did not happen. It originally opened April 8, but quickly crashed. Organizations can continue to register for an application portal account here. Up to date information on the grant can be found here

Paycheck Protection Program, Second Draw
It has been estimated the PPP2 program will be depleted for funds by early May.  If you have not done so already, and you intend to apply for a PPP2, you are encouraged to do so soon. 
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Updated information 4/1/2021
SVOG - Shuttered Venue Operators Grant and PPP and More
OMA recommends that you watch this SBA video on SVOG and Museums here as a starting point. Remember museums must have a theatre, auditorium, etc. with fixed seating to apply for a SVOG. Please remember, if you are going to apply for a PPP (including PPP2) and SVOG, you must apply for the PPP before applying for an SVOG.

SBA has posted their SVOG informational webinar which they presented on March 30 highlighting the application process for potential eligible entities? It has a lot of good information. The webinar was recorded and you can view it here. For more information about the Shuttered Venue Operators Grant, visit www.sba.gov/svogrant
Thank you to Americans for the Arts and the Arts Action Fund for the following information.
The Small Business Administration announced last Friday that the long-awaited Shuttered Venue Operators Grant (SVOG) PORTAL will officially open on Thursday, April 8, 2021. 
Newly confirmed (3/18/21) Biden-appointed SBA Administrator Isabella Guzman stated today, “Help is here for venue operators hit hard by the COVID-19 pandemic...The SBA knows these venues are critical to America's economy and understands how hard they've been impacted, as they were among the first to shutter. This vital economic aid will provide a much-needed lifeline for live venues, museums, movie theatres and many more.”
Americans for the Arts and the Arts Action Fund hosted a two-hour ArtsU webinar yesterday covering major components of the American Rescue Plan Act of 2021, which included significant updates on SVOG, PPP, and more. Resources:
Payroll Protection Program (PPP) and other Updates:
1. The Payroll Protection Program (PPP) deadline to apply is now May 31, 2021.
2. When determining your gross or earned revenue for an SVOG in 2020 and 2021, do not recognize any federal COVID relief funds like PPP, EIDL, EIDL Advances, State and Local CARES Act funds, PUA, NEA grants, etc. You do not have to recognize these funds as revenue.
3. IRS has extended the deadline to file your 2020 individual tax return this year, moving it from April 15, 2021 to May 17, 2021. However, the great majority of states have not extended their state tax return deadlines. Be mindful if you need to file an extension.
4. The Biden Administration has deferred repayment of EIDL loans by an additional 12 months for a total of 24 months. Payment plans that would have begun this month will now automatically be deferred to March 2022.
5. Check the status of your stimulus payment from the IRS.
6. If you receive unemployment assistance in 2020, the American Rescue Plan Act retroactively allows you to not recognize the first $10,200 from federal-only tax withholding. You would have received a Tax Form 1099-G for you to report the unemployment assistance that your received as ordinary income on your 1040. The IRS is quickly working to update their tax filing portals and forms so that you can request a refund on the federal taxes that you already paid on your 2020 unemployment assistance. If you have not filed yet, please wait a little longer. If you have already filed, please do not amend your tax return yet. IRS is developing a fast way to refund you. The $10,200 rule applies for the current 2021 tax year as well.
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Older information on Paycheck Protection Program Second Draw and Shuttered Venue Operators Grants

An organization can NOT receive both the PPP Second Draw and the Shuttered Venue Operators Grant, so you are encouraged to review both criteria and programs to decide the best fit for your organization. The following is provided as information only and can change on an ongoing basis. Please research the latest information for new details.

Paycheck Protection Program Second Draw
As you know by now, the Paycheck Protection Program (PPP) Second Draw already has opened for some lending institutions and will open for all this week. The rules have changed a bit, including your museum must demonstrate a reduction in revenues of at least 25% as compared with the previous year, calculated on a quarterly basis. Read the guidance and application here

New PPP forgiveness information:
-Recent legislation has eliminated the original requirement to deduct the amount of EIDL Advance you may have received from your PPP loan forgiveness.
-If your PPP loan is under $150,000, you can use the simplified forgiveness form which was released on January 19, 2021, and can be found here.

Shuttered Venue Operators
Another program in the new stimulus and relief package is the Shuttered Venue Operators (SVO) grant program or some call it the Save Our Stage. Relevant museum operators are eligible if they operate a public, tribal, or private nonprofit agency or institution organized on a permanent basis for education, cultural heritage, or aesthetic purposes.

Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. Some government entities may also be eligible to apply.

The museum must demonstrate a reduction in revenues of at least 25% as compared with the previous year, calculated on a quarterly basis. The legislation defines museums as a public, tribal, or private nonprofit agency or institution organized on a permanent basis for essentially educational, cultural heritage, or aesthetic purposes, that utilizes a professional staff, owns or utilizes tangible objects, cares for the tangible objects, and exhibits the tangible objects to the public on a regular basis. Such term includes museums that have tangible and digital collections and includes aquariums, arboretums, botanical gardens, art museums, children's museums, general museums, historic houses and sites, history museums, nature centers, natural history and anthropology museums, planetariums, science and technology centers, specialized museums, and zoological parks.
In addition, the legislation includes the following:
  1. Serving as a relevant museum as its principal business activity.
  2. Indoor exhibition spaces that are a component of the principal business activity and which have been subjected to pandemic-related occupancy restrictions.
  3. At least 1 auditorium, theater, or performance or lecture hall with fixed audience seating and regular programming.
Although the application is not available at this time, more information can be found on the Shuttered Venue Operators Grant page. The National Law Review has a synopsis of the SOV legislation here

Other items of interest to explore further include EIDL Loans, Employee Retention Credit, and retroactive grants from NEA and NEH for general operation support to name a few.

You can download a 2021 COVID-19 Arts Resource Table here from Americans for the Arts Action Fund.

Additional Information from Americans for the Arts Action Fund 3/15/2021:
  • SBA announced that its Shuttered Venue Operators Grants (SVOG) application portal will open in early April. In the meantime, several documents have been updated on the SVOG website, but certain sections still state that you cannot apply for a PPP and an SVOG. That information is incorrect and will eventually be updated online. The SVOG new FAQs do make it clear that you can now apply for both a PPP and SVOG. However, please note the additional twist in question #5 on page 2 of the FAQs that you cannot apply for a PPP after receiving an SVOG. You will also see in question #17 on page 14 that the SBA has clarified that audits will NOT be required for the great majority of SVOG applicants.