As theatres continue to access new and extended forms of federal COVID-19 relief, TCG is sharing with you these very latest developments from Washington, D.C.
- Congress Passes PPP Deadline Extension: On Thursday, the U.S. Congress passed a bill extending the Paycheck Protection Program (PPP) application deadline from March 31 to Monday, May 31, 2021. The most recent PPP data indicate that nearly $200 billion of the $280 billion in available 2021 PPP funding has been accessed. In testimony before the Senate Small Business Committee yesterday, the Small Business Administration (SBA) predicted that, given the pace of applications processed, remaining PPP funding may be exhausted by mid- to late-April.
- PPP/Shuttered Venue Dual Eligibility: As a reminder, last week the SBA announced that the Shuttered Venue Operators Grant (SVOG) program will open to applications on Thursday, April 8. The SBA has also released new Paycheck Protection Program (PPP) guidance and new first and second draw PPP application forms, implementing the American Rescue Plan's new policy allowing organizations that received PPP funding after December 27, 2020 to qualify for an SVOG and subtract the amount of 2021 PPP funding received from the maximum SVOG grant amount.
- It is very important to note that while it is possible to apply for a Shuttered Venue Grant after receiving a 2021 PPP loan, it is not permissible to receive a PPP loan after your organization has been approved for an SVO grant. The regulations specify, "If a PPP applicant is approved for an SVO grant before SBA issues a loan number for the PPP loan, the applicant is ineligible for the PPP loan and acceptance of any PPP loan proceeds will be considered an unauthorized use." The SBA has indicated that the order in which SVOG applications are received will be taken into account as the agency processes grants through the priority periods, and through the general grant processing period. So, all still considering this dual-eligibility approach that have not yet applied for a 2021 PPP loan should keep in mind the short timeframe available before the SVOG program opens on Thursday, April 8.
- Newest Shuttered Venue FAQ: The Small Business Administration has issued a March 22 update to the Frequently Asked Questions regarding the Shuttered Venue Operators Grant program. Page 15 of the revised FAQ includes several answers to questions about the application submission process.
Please stay tuned for further updates and continue to consult TCG’s COVID-19 Federal Relief Page where we keep track of key developments and link to the most up-to-date guidance direct from federal agencies, as it becomes available.