PPP Loans and Music Venue Grants are Reasons to be Optimistic
Image from SBA’s official “How SBA Can Help You Start, Grow, Expand, or Recover Your Business” video.
After a year of receiving modest help from the U.S. government, independent music venues in Indiana have the opportunity for substantial aid while striving to stay in business during the pandemic.
Venue owners recently learned they can apply for Paycheck Protection Program 2 and remain eligible for the Shuttered Venue Operators Grant included in December’s Economic Aid Act.
March 31 is the deadline to apply for the second round of PPP. Borrowers who received a first-round PPP loan are eligible for the second round. The forgivable loans may be used to pay for expenses such as payroll costs, mortgage interest, rent, utilities and worker protection costs related to COVID-19.
The Shuttered Venue Operators Grant, abbreviated to SVOG and previously known as the Save Our Stages Act, will open to applications on April 8 – or 101 days after the federal stimulus package that authorized the grant was signed into law.
Venue owners are eager to receive this assistance following a year defined by canceled events and reduced capacity mandates. It’s estimated that independent Indiana venues have experienced more than $22 million in lost revenue because of the COVID-19 pandemic.
“SVOG is going to be vital to us digging out of the hole and making it through this year,” says Jesse Rice, owner of Indianapolis venue Black Circle Brewing Co. “Even after the vaccinations and the health emergency is lifted, it will take time to get back to normal booking levels.”
Black Circle, 2201 E. 46th St., built an outdoor stage last summer as a way to do business during the pandemic.
“As bad as it has been, we are actually lucky to have had the outdoor space to generate some revenue,” Rice said. “There are so many venues that just closed, refunded tickets and laid off their whole staff.”
The SVOG program earmarks more than $16 billion to help shuttered venues, with funds administered by the U.S. Small Business Administration’s Office of Disaster Assistance.
Eligible applicants may qualify for grants equal to 45% of their gross earned revenue in 2019 or $10 million, whichever is less. During the first 59 days of SVOG applications, $2 billion will be reserved for businesses that have no more than 50 employees.
The SBA detailed the SVOG rollout on March 19, three days after the U.S. Senate confirmed Isabel Guzman as the SBA’s new administrator.
To apply for a second-round PPP, visit sba.gov. Information on SVOG applications is available on the same website.
The Indiana Independent Venue Alliance (IIVA) is an Indiana 501(c)(3) not-for-profit organization that empowers and preserves Indiana’s live music community through supporting grassroots concert venues, music festivals and live music promoters.
Those interested in donating to IIVA, to fund the health of the organization’s micro-grant programs can do so here.
Hoosier-based independent venues looking to join IIVA can sign up here or contact our Membership Director with any questions at karah@indianavenuealliance.org.