Advocacy Update: Watch Your SVOG Account: SBA Begins Supplemental Invitations Today

By Laurie Baskin posted 08-27-2021 17:51


The Small Business Administration (SBA) will be posting important action items in the accounts of certain applicants to the Shuttered Venue Operators Grants (SVOG) program today. Please keep a very close eye on your account today and over the next week to see if action is needed in order for your orchestra to participate in the supplemental grant award process!

  • Watch for a mandatory request to update your 2021 revenue numbers: As most applicants know by now, the SBA has recently invited applicants to participate in an optional process to update the 2021 revenue figures that are being used for determining eligibility for the supplemental grant process. On reviewing the applicant pool, the SBA has identified a universe of about 2,000 applicants that have 2021 revenue figures that do not appear to be correct or complete and is requiring those applicants to verify or update those revenue numbers so that the agency can accurately determine supplemental award eligibility.

  • Watch for an invitation to receive a supplemental award: Starting today, and on a rolling basis over the next week, the SBA will begin issuing invitations for applicants to participate in the supplemental grant award process. This invitation will point you to an action item in your SVOG account, which will prompt you to view the offer of an award; modify the award amount to a lesser number than what you have been offered, if desired; and, submit your indication that your organization will be participating in the supplemental award process.

These grant offers will be in an amount equal to 50% of the applicant's original grant award amount, before any deduction was taken for Paycheck Protection Program funding received in 2021. If an applicant received a PPP award after the initial SVOG grant was issued, the PPP will be deducted from the supplemental grant award amount. (Reminder: the combined amount received through a first and supplemental SVOG award may not exceed $10 million.)

Some details regarding the supplemental process are included in the SBA's applicant FAQ (page 38) and post-application FAQ (page 6). The SBA is expected to issue more details more formally, but in the meantime has indicated that when an applicant receives a supplemental award, the timeframe for allowable expenses incurred will be extended to begin on March 1, 2020 and conclude on June 30, 2022, for the total amount of both the first and supplemental funds.

After an applicant completes the response to the supplemental invitation, the SBA will issue an official notification of award for the supplemental grant. Supplemental awards are expected to be issued after Labor Day.

Please note from the July 22 updated FAQs:

  1. Is there a difference between the amount of time an SVOG recipient has to expend award funds and the period of time during which they may incur allowable costs?

Yes. While a recipient of an Initial Phase SVOG has one year from the date of its award to expend its grant funds, it can only use those funds to pay allowable items of cost incurred between March 1, 2020, and December 31, 2021. Where an entity receives a Supplemental Phase SVOG, it will have 18 months from the date of its Initial Phase Award to expend its grant funds, but it can only use those funds to pay allowable costs incurred between March 1, 2020, and June 30, 2022.

Please stay tuned for additional updates.