[Federal Register Volume 86, Number 57 (Friday, March 26, 2021)]
[Notices]
[Pages 16270-16274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06338]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
Applications for New Awards; Shuttered Venue Operators Grants
(SVOG)
AGENCY: U.S. Small Business Administration.
ACTION: Notice of funding opportunity.
-----------------------------------------------------------------------
SUMMARY: The U.S. Small Business Administration (SBA) issues a notice
inviting applications for new awards for fiscal year (FY) 2021 for
SVOG, Catalog of Federal Domestic Assistance (CFDA) number 59.075. This
notice relates to the approved information collection under OMB control
number 4040-0004.
DATES:
Applications Available: April 8, 2021.
Deadline for Transmittal of Applications: The SBA will receive and
process applications on a rolling basis, and submission will remain
available until funds become exhausted.
Pre-application webinar information: The SBA held a pre-application
meeting, via webinar, for prospective applicants on January 14, 2021,
Eastern time. The webinar is available for viewing at https://www.youtube.com/watch?v=PdfQGb6z-gg.
The SBA will hold a second webinar on March 30, 2021 and will make
information available on the webinar at www.sba.gov/svogrant.
ADDRESSES: The SBA will only accept applications submitted
electronically through the SBA's website via the following link:
www.sba.gov/svogrant.
FOR FURTHER INFORMATION CONTACT: Barbara E. Carson, U.S. Small Business
Administration, 409 Third Street SW, Washington, DC 20416. Telephone:
(800) 659-2955. Email: [email protected].
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
SUPPLEMENTARY INFORMATION:
Full Text of Announcement
I. Funding Opportunity Description
Purpose of Program \1\: The Economic Aid to Hard-Hit Small
Businesses, Nonprofits and Venues Act signed into law on December 27,
2020 included $15 billion in grants to operators of shuttered venues,
which the SBA's Office of Disaster Assistance will administer. On March
11, 2021, the American Rescue Plan Act of 2021 (Pub. L. 117-2, title V,
sec. 5005) was enacted; it provides an additional $1,249,500,000 in
grants for these entities. Of this total grant funding, at least $2
billion is reserved for applicants with up to 50 full-time employees.
Grants of up to $10 million will be disbursed to eligible entities in
accordance with requirements set forth in 2 CFR part 200, as
applicable. This guidance explains the rules associated with the use of
federal grant funds.
---------------------------------------------------------------------------
\1\ The terms in the text of this notice that are in italics are
defined in the Definitions section.
---------------------------------------------------------------------------
[[Page 16271]]
Background: Under the SVOG Program, an eligible entity that was in
operation on January 1, 2019 may qualify for grants equal to the lesser
of an amount equal to 45% of its gross earned revenue or $10 million.
Eligible entities that began operations after January 1, 2019, may
qualify for grants equal to the lesser of the average monthly gross
revenue for each full month the entity was in operation during 2019
multiplied by 6 OR $10 million. The maximum award amount is $10
million. No less than $2 billion of the total program is reserved for
small employers who meet the eligibility requirements and have not more
than 50 full-time employees.
The SBA will receive and process awards on a rolling basis to
ensure that those entities hardest hit by the COVID-19 pandemic are
granted an opportunity to access this much-needed assistance.
Priorities
First Priority: Applicants who lost 90% or more of their revenue
between April 2020 and December 2020, due to the COVID-19 pandemic.
Second Priority: Entities that lost 70% or more of their revenue
between April 2020 and December 2020, due to the COVID-19 pandemic.
Third Priority: Entities that suffered a 25% or greater revenue
loss between any one quarter of 2019 and the corresponding quarter of
2020.
Definitions
Cover Charges means charges to encompass front door entrance fees,
food or beverage minimums, or other similar charges required to gain
admission to a venue, whether collected via ticket sales, addition to a
tab, or direct payment.
Covered Mortgage Obligation means a debt obligation that is an
obligation of the borrower, including a related mortgage on real or
personal property, and that was entered into before February 15, 2020.
Covered Rent Obligation means rent obligated under a leasing
agreement in force before February 15, 2020.
Covered Utility Obligation means electricity, gas, water,
transportation, telephone, or internet access expenses for which
service began before February 15, 2020.
Covered Worker Protection Expenditures means an operating or a
capital expenditure to facilitate the adaptation of the business
activities of an entity to comply with requirements established or
guidance issued by the Department of Health and Human Services, the
Centers for Disease Control, or the Occupational Safety and Health
Administration, or any equivalent requirements established or guidance
issued by a state or local government, during the period beginning on
March 1, 2020 and ending on December 32, 2021.
Eligible Person or Entity is a: Live venue operator or promoter,
theatrical producer, or live performing arts organization operator, a
relevant museum operator, a motion picture theatre operator, or a
talent representative that meets the relevant facility and category
requirements related to its entity type in addition to the following
eligibility requirements:
1. The eligible entity was fully operational (including in a pre-
opening, start-up capacity) as an eligible entity on February 29, 2020,
and
2. The eligible entity had gross earned revenue during the first,
second, third, or fourth quarter in 2020 that demonstrates not less
than a 25% reduction from the gross earned revenue of the eligible
entity during the same quarter in 2019. Firms not in operation in 2019
may qualify for an SVOG if their gross earned revenues for the second,
third, or fourth quarter of 2020 demonstrate a reduction of not less
than 25% from their gross earned revenue for the first quarter of 2020.
3. As of the date of the grant under this section--
a. the live venue operator or promoter, theatrical producer, or
live performing arts organization operator is or intends to resume
organizing, promoting, producing, managing, or hosting future live
concerts, comedy shows, theatrical productions, or other performing
arts events;
b. the motion picture theatre operator is open or intends to reopen
for the primary purpose of public exhibition of motion pictures;
c. the relevant museum operator is open or intends to reopen; or
d. the talent representative is representing or managing artists
and entertainers.
4. The venues at which the live venue operators or promoters,
theatrical producers, or live performing arts organization operators
stage events, or at which the artists and entertainers represented or
managed by the talent representative perform, have the following
characteristics:
a. A defined performance and audience space, and
b. Mixing equipment, a public address system, and a lighting rig.
c. Engage 1 or more individuals to carry out at least 2 of the
following roles:
(1) A sound engineer;
(2) A booker;
(3) A promoter;
(4) A stage manager;
(5) Security personnel; or
(6) A box office manager.
d. Most performances and artists are paid fairly and do not play
for free or solely for tips, except for fundraisers or similar
charitable events.
e. For a venue owned or operated by a nonprofit entity that
produces free events, the events are produced and managed primarily by
paid employees, not by volunteers.
f. Performances are marketed through listings in printed or
electronic publications, on websites, by mass email, or on social
media.
5. A motion picture theater or theaters operated by the motion
picture theatre operator have the following characteristics:
a. At least 1 auditorium that includes a motion picture screen and
fixed audience seating.
b. A projection booth or space containing not less than 1 motion
picture projector.
c. A paid ticket charge to attend exhibition of motion pictures.
d. Motion picture exhibitions are marketed through showtime
listings in printed or electronic publications, on websites, by mass
mail, or on social media.
6. The relevant museum (s) for which the relevant museum operator
is seeking a grant under this section have the following
characteristics:
a. Serves as a relevant museum as its principal business activity.
b. Uses indoor exhibition spaces that are a component of the
principal business activity and which have been subjected to pandemic-
related occupancy restrictions.
c. Uses at least 1 auditorium, theater, or performance or lecture
hall with fixed audience seating and regular programming.
Fixed Seating means seating that is permanently fixed to the floor
or ground, or which is so heavy or cumbersome as to make removing it
impractical. Where fixed seating is required for an auditorium or
similar space, a majority of the seating provided in that space must
meet the definition of fixed seating.
Full-time employee means--
1. any employee working not fewer than 30 hours per week shall be
considered a full-time employee; and
2. any employee working not fewer than 10 hours and fewer than 30
hours per week shall be counted as one-half of a full-time employee.
Live Venue Operator or Promoter, Theatrical Producer or Live
Performing Arts Organization Operator
[[Page 16272]]
1. means--
a. an individual or entity--
(1) that, as a principal business activity, organizes, promotes,
produces, manages, or hosts live concerts, comedy shows, theatrical
productions, or other events by performing artists for which--
(a) a cover charge through ticketing or front door entrance fee is
applied; and
(b) performers are paid in an amount that is based on a percentage
of sales, a guarantee (in writing or standard contract), or another
mutually-beneficial formal agreement, and (2) for which not less than
70% of the earned revenue of the individual or entity is generated
through, to the extent related to a live event cover described in
subclause a(1) of this section, cover charges or ticket sales,
production fees or production reimbursements, nonprofit educational
initiatives, or the sale of event beverages, food, or merchandise; or
b. an individual or entity that, as a principal business activity,
makes available for purchase by the public an average of not less than
60 days before the date of the event tickets to events--
(1) described in subclause a(1) of this section; and
(2) for which performers are paid in an amount that is based on a
percentage of sales, a guarantee (in writing or standard contract), or
another mutually beneficial formal agreement; and
2. includes an individual or entity described in subparagraph 1 of
this section that- a. operates for profit;
b. is a nonprofit organization;
c. is government-owned; or
d. is a corporation, limited liability company, or partnership or
operated as a sole proprietorship.
Majority Owned or Controlled means that at least 51% of the
ownership interests in an entity (regardless of its legal structure)
are held by a single individual or entity.
Motion Picture Theatre Operator means an individual or entity
that--
1. as the principal business activity of the individual or entity,
owns or operates at least 1 place of public accommodation for the
purpose of motion picture exhibition for a fee; and
2. includes an individual or entity described in subparagraph 1
that--
a. operates for profit;
b. is a nonprofit organization;
c. is government-owned; or
d. is a corporation, limited liability company, or partnership or
operated as a sole proprietorship.
Principal Business Activity is determined using a firm's primary
industry under the SBA size regulations (13 CFR 121.107) to define
``principal business activity.'' To determine a given firm's principal
business activity, the SBA will consider the distribution of an
entity's receipts, employees and costs of doing business among the
different lines of business activity in which its business operations
occurred for the most recently completed fiscal year. The SBA may also
consider other factors, such as the distribution of patents, contract
awards, and assets, as appropriate.
Regular Programming means programming provided on an ongoing and
near-continuous basis of an average of at least four times a month.
Relevant Museum means a public or private nonprofit agency or
institution organized on a permanent basis for essentially educational
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.
Application Requirements
Applications for SVOG funds must address the following application
requirements and the application must include the following supporting
documentation--
1. Certification of Need and Assurance--All entities shall include
an assurance that the entity was fully operational on February 29, 2020
and that the funds will only be used for the allowable purposes
established by law. This statement is required by statute and must
include the following:
a. If the entity is currently in operation, the entity will remain
in operation after receipt of the funds; or
b. If the entity is currently shuttered, the statement shall
include the intent to reopen with an estimated date of reopening.
2. 2019 Federal Tax Returns;
3. 2020 Federal Tax Returns--Entities are required to submit 2020
Federal tax returns with their applications. If an entity has not filed
2020 Federal tax returns at the time of application, and if the entity
is awarded an SVOG and the due date for the entity's 2020 tax returns
has passed, the entity must submit 2020 Federal tax returns after the
first disbursement. If an entity's 2020 tax returns are not yet due,
the entity must provide 2018 and 2019 taxes at the time of application
and 2020 taxes as soon as practicable after filing 2020 taxes.
4. Employee List with Job Titles and Employee Status (Full or Part
time);
5. Quarterly Profit and Loss Statements for 2019 and 2020;
6. Articles of Incorporation, Bylaws and DBA Certificate (if
applicable);
7. Income Statements for 2019 and 2020;
8. Copy of most recent Audited Financial Statement (2019) or Single
Audit (if applicable) or link to website where the report can be
located;
9. Tax Exempt Status Letter (applicable only for Non-profit
entities);
10. Listing of all Individuals Represented and Venues for which
they have contracted to perform (applicable only for Talent
Representatives);
11. Examples of Contractual/Consultant Agreements with talent
represented, and venues used and evidence of booking (This applies only
for Talent Representatives);
12. State or Local COVID Occupancy Restrictions (applicable only
for Museum Operators);
13. Floor Plan (and plan of grounds if outdoor space is used for
the performance venue). The floor plan must demonstrate the location of
the defined performance space. Applicants must provide the floor plan
that is used for insurance purposes or local fire inspections. In the
case of motion picture theatre operators, the floor plan must also
identify the projection booth. (This applies only to Live Venue
Operator or Promoter, Theatrical Producer, or Live Performing Arts
Organization Operator (Excluding Freelancers); Motion Picture Theatre
Operators; Relevant Museums);
14. Evidence of Marketing (applicable only for Live Venue Operator
or Promoter, Theatrical Producer, or Live Performing Arts Organization
Operator (Excluding Freelancers); Motion Picture Theatre Operators;
Relevant Museums) Entities that remain open must provide their most
recent marketing materials. Those entities that closed due to the
COVID-19 pandemic must provide the most recent marketing materials used
prior to closing.
15. Indirect Cost Rate Agreement from Cognizant Agency (if
applicable). If the entity does not have a current negotiated indirect
cost rate in place, the entity may negotiate a proposed indirect cost
rate. If the entity has never had a negotiated cost rate agreement, the
10% de minimis rate may be utilized, in accordance with the procedures
set forth in 2 CFR 200.414. If the entity has an indirect cost rate
agreement from a cognizant agency, a copy of that
[[Page 16273]]
agreement must be included in the application.
Assurances: All applicants must submit assurances through the
application process. The assurances include the Standard 424 (b), SBA
Form 1711--Certification Regarding Lobbying & Disclosure of Lobbying
Activities, SBA Form 1623--Debarment and Suspension, a Drug-free
Workplace Agreement, and certifications described in section 324 of
division N of the Consolidated Appropriations Act, 2021 (Pub. L. 116-
260).
Program Authority: Section 324 of division N of the Consolidated
Appropriations Act, 2021 (Pub. L. 116-260).
Applicable Regulations:
1. The Office of Management and Budget Guidelines to Agencies on
Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part
180, as adopted and amended as regulations of the Agency in 2 CFR part
3485.
2. The Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards in 2 CFR part 200, as adopted and
amended as regulations of the Agency in 2 CFR part 3474.
II. Award Information
Type of Award: Grants.
Estimated Available Funds: $15,000,000,000. Contingent upon the
availability of funds and the quality of applications, the SBA may make
supplemental awards in FY 2021.
Estimated Range of Awards: $250,000--$10,000,000.
Estimated Average Size of Awards: $1,000,000.
Maximum Award: No grant shall exceed $10 million and the combined
grants of an entity and its subsidiaries may not exceed $10 million.
The SBA will grant Initial Phase awards either to:
1. An eligible entity that was in operation on January 1, 2019, the
lesser of an amount equal to 45% of their 2019 gross earned revenue; or
2. An eligible entity that began operation after January 1, 2019,
the lesser of the average monthly gross revenue for each full month the
entity was in operation during 2019 multiplied by 6; or
3. $10 million.
Estimated Number of Awards: 15,000.
Note: The SBA is not bound by any estimates in this notice.
Limits to Initial Grants to Affiliates: Not more than 5 business
entities of an eligible person or entity that would be considered
affiliates under the affiliation rules of the Administration may
receive a grant.
Budget Period: Funding received under this grant may be used for
allowable costs incurred during the period beginning on March 1, 2020
and ending on December 31, 2021.
III. Eligibility Information
1. Eligible Entity: An eligible person or entity is a live venue
operator or promoter, theatrical producer, or live performing arts
organization operator, a relevant museum operator, a motion picture
theatre operator, or a talent representative that meets the criteria
included in the definition of an eligible person or entity.
2. Exclusions and Ineligible Entity: An entity is determined
ineligible if it has any of the following characteristics:
a. Is a publicly-traded corporation listed on a stock exchange.
b. Receive more than 10% of gross revenue from Federal funding
during 2019, excluding amounts received by the eligible entity under
the CARES Act or the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).
c. Is not majority owned or controlled by an entity with all of the
following characteristics:
(1) Owning or operating eligible entities in more than 1 country;
(2) Owning or operating eligible entities in more than 10 States;
and
(3) Employing more than 500 full-time employees as of February 29,
2020.
d. Where an eligible entity is owned by a State or a political
subdivision of a State, it--
(1) must function as the eligible entity; and
(2) cannot include entities of the State or political subdivision
other than the eligible entity.
e. The entity cannot present live performance of a prurient or
sexual nature and cannot derive more than 5% of its gross revenue,
directly or indirectly, from the sale of products or services or the
presentation of any depictions or displays that are of a prurient or
sexual nature.
3. Cost Sharing or Matching: This grant does not require cost
sharing or matching.
4. Subgrantees: A grantee under this program may not award
subgrants.
IV. Application and Submission Instructions
1. Application Submission Instructions: All applications for this
grant will be submitted electronically via SBA's website. Please visit
www.sba.gov/svogrant for information on how to submit an application.
2. Intergovernmental Review: This program is not subject to
Executive Order 12372 and the regulations in 34 CFR part 79.
3. Funding Uses: Grantees under this program must only use the
grant funds for the following--
a. Payroll costs;
b. Payments on any covered rent obligation;
c. Any covered utility payment;
d. Scheduled payments of interest or principal on any covered
mortgage obligation (which shall not include any prepayment of
principal on a covered mortgage obligation);
e. Scheduled payments of interest or principal on any indebtedness
or debt instrument (which shall not include any prepayment of
principal) incurred in the ordinary course of business that is a
liability of the eligible person or entity and was incurred prior to
February 15, 2020;
f. Covered worker protection expenditures;
g. Payments made to independent contractors, as reported on Form-
1099 MISC, not to exceed a total of $100,000 in annual compensation for
any individual employee of an independent contractor, and
h. Other ordinary and necessary business expenses, including--
(1) Maintenance expenses,
(2) Administrative costs, including fees and licensing costs,
(3) State and local taxes and fees,
(4) Operating leases in effect as of February 15, 2020,
(5) Payments required for insurance on any insurance policy, and
(6) Advertising, production transportation, and capital
expenditures related to producing a theatrical or live performing arts
production, concert, exhibition, or comedy show, except that a grant
under this section may not be used primarily for such expenditures.
4. Funding Restrictions: An eligible person or entity may not use
amounts received under a grant for the following purposes:
(a) To purchase real estate;
(b) For payments of interest or principal on loans originated after
February 15, 2020;
(c) To invest or re-lend funds;
(d) For contributions or expenditures to, or on behalf of, any
political party, party committee, or candidate for elective office; or
(e) For any other use as may be prohibited by the Administrator.
V. Application Review Information
1. Review and Selection Process: The SBA will review complete
applications in the order in which it receives them based on the
established priorities and the availability of funds. The SBA may
[[Page 16274]]
decline incomplete applications or applications failing to provide
required documentation.
2. Risk Assessment and Specific Conditions: Consistent with 2 CFR
200.205, before awarding grants under this competition, the SBA
conducts a review of the risks posed by applicants. Under 2 CFR
3474.10, the Administrator may impose specific conditions and, in
appropriate circumstances, high-risk conditions on a grant if the
applicant or grantee is not financially stable; has a history of
unsatisfactory performance; has a financial or other management system
that does not meet the standards in 2 CFR part 200, subpart D; has not
fulfilled the conditions of a prior grant; or is otherwise not
responsible.
3. Integrity and Performance System: If you are selected under this
opportunity to receive an award that over the course of the project
period may exceed the simplified acquisition threshold (currently
$250,000), under 2 CFR 200.205(a)(2), we must make a judgment about
your integrity, business ethics, and record of performance under
Federal awards, that is, the risk posed by you as an applicant---before
we make an award. In doing so, we must consider any information about
you that is in the integrity and performance system (currently referred
to as the Federal Awardee Performance and Integrity Information System
(FAPIIS)), accessible through the System for Award Management. You may
review and comment on any information about yourself that a Federal
agency previously entered and that is currently in FAPIIS.
Please note that, if the total value of your currently active
grants, cooperative agreements, and procurement contracts from the
Federal Government exceeds $10,000,000, the reporting requirements in 2
CFR part 200, appendix XII, require you to report certain integrity
information to FAPIIS semiannually. Please review the requirements in 2
CFR part 200, appendix XII, if this grant plus all the other Federal
funds you receive exceed $10,000,000.
VI. Award Administration Information
1. Award Notices: If your application is successful, we will notify
you via electronic correspondence containing a link to access an
electronic version of your grant award notification.
If your application is not evaluated or not selected for funding,
we will notify you.
2. Administrative and National Policy Requirements: If awarded
funds under this grant, the recipient must agree to cooperate with all
financial monitoring and audit reviews conducted by SBA, its agents, or
contractors.
3. Reporting:
(a) If you apply for a grant under this competition, you must
ensure that you have in place the necessary processes and systems to
comply with the reporting requirements in 2 CFR part 170, should you
receive funding under the opportunity. This does not apply if you have
an exception under 2 CFR 170.110(b).
(b) After using all the funds awarded to you, you must submit a
final report, including financial information, as directed by the
Administrator.
4. Documentation--Additional documentation requirements that are
consistent with the eligibility and other requirements under this NOFO,
including requiring an eligible person or entity that receives a grant
under this funding opportunity to retain records that document
compliance with the requirements for grants under this program--
(a) with respect to employment records, for the 4-year period
following receipt of the grant; and
(b) with respect to other records, for the 3-year period following
receipt of the grant.
VII. Other Information
Accessible Format: Individuals with disabilities can obtain this
document and a copy of the application package in an accessible format
(e.g., braille, large print, audiotape, or compact disc) by request to
the program contact person listed under FOR FURTHER INFORMATION
CONTACT.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at www.govinfo.gov. At this site, you can view this
document, as well as all other documents of the SBA published in the
Federal Register, in text or Portable Document Format (PDF). To use
PDF, you must have Adobe Acrobat Reader, which is available for free at
the site.
You can also access documents of the SBA published in the Federal
Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the SBA.
Dated: March 23, 2021.
Barbara E. Carson,
Deputy Associate Administrator, Office of Disaster Assistance.
[FR Doc. 2021-06338 Filed 3-25-21; 8:45 am]
BILLING CODE 8026-03-P