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


Posted by OMA on 01/17/2021
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. Download an FAQ sheet about the grant. The application will be available on grants.gov when released. 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.